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UNIVERSITY OF 
ILLINOIS LIBRARY 
AT URBANA-CHAMPAIGN 
STACKS 








_ NEW YORK UNIVERSITY 
School of Commerce, Accounts and Finance 
Accounting Series 


ADVANCED PROBLEMS he 
aa 


/ 
/ 


Collected and Classified 
Dy 


donn T. Madden, A. M., B. C. S. 
Assistant Dean of the School of Commerce, 
Accounts and Finance, New York University. 
Certified Public Accountant, New York. 


and 


Arthur H. Rosenkampff, B. C. &. 
Professor of Accounting and Head of the 
Department of Accounting Instruction in the 
School of Commerce, Acaqccunts and Finance, 
New York University. 

Certified Public Accountant, New York. 


EDVARDS BROS. 
Publishers 
Ann Arbor, Mich 


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PREFACE 


This volume contains part of the material used in 
the course in Advanced Problems in New York University. 
The problems have been selected with special reference to 
the previous training in accounting which the students in 
our course have received. It follows therefore that a 
great deal of the material uséd will not be suitable for 
those who have had other preliminary training or who do not 
have in view the special aims of this group or students. 
Particular consideration has been given in the selection of 
the material to the needs of those who desire an intensive 


review of the subject matter. 


John T. Madden 


Arthur H. Rosenkampff 


164 















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TABLE OF CONTENTS 


Single Entry Bookkeeping Problems 1 - & inclusive 
Partnership Accounting x 6 -46 . 
Joint Ventures end Consignments " 47 “63 : 
Corporation Accounting n 54-108 : 


Financial Statements 


Balance Sheet and Statement of 


Incone and Profit & Loss " 109-137 " 
Comparative Steatexents tt 158-141 n 
Consolidated Statenents " 143-146 " 
Agencies n 147~152 ” 
Fiduciary Accounting " 153-166 " 
Brokerage Accounting " 1672171 a 


Insolvency Accounts 


Statsment of Affairs 7 n 178-184 " 

cvustenent of Realization & Liquidation n 18$=-1S4 " 
Branch Office & Foreign Exchange Accounting " 195-207 " 
Investment Accounting and Mathematics t = - 208215 i 
Cost Accounting — i 220-255 " 
Municipal Accounting n 264-335 " 
‘Public Utilities Accounting N . $36e837 n 


Miscellaneous Problems including 
Institutional Accounting 
Insurance Accounting 


Real Estate Accounting 


Bank Accounting, etc. | n 258-376 ' 


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NEW YORK UNIVERSITY 
SCHOOL OF COMMERCE - ACCOUNTS & FINANCE 
ACCOUNTING SERIES - PROBLEM REVIEW 
SINGLE ENTRY BOOKKEEPING 
PROBLEM NO. 1. 
(Ohio C. BP. A, Examination) 
The books of the Butter, Egg & Cheese Company, with 
an authorized and outstanding capital stock issue of $25,000.00 
are kept by single entry. 


It annually inventories all of its assets and liabilities 


and from such inventory prepares a financial statement. At 


December 31, 1913, this inventory is as follows:- 


ie UG @ o)y) +. sees =. oe oo 1, DAO 
Balance — Bank A «ee « - » .10,824.00 
Ascounts Heceivable « . . +. 29,521.00 
LO Shares Stock in 

competing company ... 1,000 .00 
Plant & Equipment ....+- 64,938.00 
Merchandise Inventory . .. 81,737.00 
PYSPSAICAEADENSCH .- sme. «ie 5,081.00 
Overdraft - Bank B re 5,903.00 
Accounts Payable...» « « 19,747.00 
Mortgage Payable ,. ..-+ .». 385,000.00 


Notes Payable ... . + eee OO 

From a comparison of the financial statements at the 
beginning and the end of the year you find that the above-named 
item of Plant and Equipment is stated in an amount less by 
911,460.00 than it was at the beginning of the year plus 
additions during the year. 


The financial statement for the beginning of the year 
showed a surplus of $35,703.00. 


From your analysis of the disbursements and unpaid 
accounts payable at the beginning and the end of the year, you 
find a total of purchases amounting to $651,910.00 and a total 
of expenses for salaries, wages, supplies, repairs, etc., 
amounting to $120,115.00. nee 


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PROBLEM NO. 2 2 
(N.Y. C.P.A. Examination) 


T. F. Fynes and W. J. Altherr are partners in business, 
Sharing equally in gains and losses. Their books have been kept 
by single entry, but they desire to change them to the double 
entry method. The following is an abstract of their affairs at 
this time: 


Assets and liabilities per ledger: T. F. Fynes, investment 
$12,500, withdrawals $2,500. W. J. Altherr, investment $12,500, 
withdrawals $2,000. Sundry accounts receivable $8,500, sundry ac- 
counts payable $6,0CO. Other assets and liabilities not in ledger: 
merchandise per inventory $18,000, cash in pank $5,500, bills 
receivable $2,300, bills payable $2,000, bank stock $3,000, real 
estate $5,000. 


_. Determine the amount of gain and loss of each partner at 
this date and formulate a journal entry that will convert the 
Single entry ledger to a double entry ledger. 


Ref. 8-3 


PROBLEM NO. 3. 
(N.Y. C.P.A. Examination) 
You are asked to prepare an account showing the profit earned 


by a concern for a certain period. The books have been kept by 
Single entry and you gather from them the following: 


eke! gd ee Ge og ee stn a lee ip dain ism Wiel © owe ee $19,360 
Se ee al oe re i nwo we ce a ene oe pce Se we mits 0 iebetene 2,600 
RA MCTAT TG eT eI Bara oh kui te Pcie a alas oo de ee oN ee 15,600 
Merchandise, «...-:s re erred ct aie eta a eae timers ae 10,400 
Ne mR ee ar Re Te er ce Sar MINERS NG, whi c> nck ao oe 1,850 
UMP ela has) qetr dalled Kann oa Pe een Ee org aS Pe anaes rat Sea a 3,850 
1s OL EOC GE 0 ee ee nee Pere ere area os 5,000 
Merchandise used by proprietor... ..- sere ee eecese 800 


| The capital above set out is the balance of the account after 
$1,500 withdrawn during the period and $1,200 for salary have 
been charged up against it. 


Set up the profit and loss account. 


154 


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PROBLEM NO. 4. 3 
(N.Y. C.P.A. Examination) 


John Doe commenced business with a cash capital of $15,000. 
At the close of his Saga period the ledger accounts were: 
accounts receivable, $4,312. 503 merchandise debit balance, 
$5,062.50; ac counts payable, &5, 375; expense, $900. Doets 
total loss was $2,775. 


Prepare a statement of assets and liabilities and the profit 
or loss. 


Retr. 37-1 


PROBLEM NO. 5. 
(N.Y. C.P.A. Examination) 


The ledger accounts of Henry James on December 231, 1915 
shoved: 


Agcounts payable $16,125; accounts receivable $13,188; ex- 
pense $2,450; debit balance merchandise account $15,187. fe had 
started in business January 1, 1915, investing $45,000 cash. His 
totai loss for the year 1915 was 8,074.50. 


Prepare a statement of assets and iiabilities and the pro- 
72 ueOT. LOSS, 


Ref. 40-3 
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PARTNERSHIP ACCOUNTING 4 
PROBLEM NO. 6. 
(N.Y. C.P.A. Examination) 


A, B and ¢ enter into partnership January 1, 1895. A con- 
sributes $8,500, B $5,500, and C $4,500. The profits and losses 
axé to be divided in the same proportion. December 31, 1895, 
whe partners agreed that before dividing profits and losses there 
Shall be charged as an expense of the business and placed to their 
individual credit, salaries as follows: aA #800, B $700, o $600. 


December 31, 1895, the trial balance of their books showed 
the followine: 


es, or, oly ts a Sv Aes aes OWS Re ewe iwese em 8,500.00 
eee tale tally: <x ye iatallank’s'«'« «es "only W%latat ate eked PY. ie 5,500.00 
le OR I ES, Oe ass ne oe 4 4,500.00 
Coun bomen. i bank, 0... aka eco s oe -$ 1,900.48 

Stock, January 1, 1895,..... pret Tatake Pe 11,550.06 
ES ae eee a eee eee eee ++% © 51,665.70 

GS A ae ee te ae we % 25,650.80 
Pere ee ete. FAREUVES ec sees ve vs eS tein 3,068.92 

Book accounts receivable including consign- 

MONG yee en Ges ees Tut EERE Le on ne Wek has 20,745.83 
Pe STR TLG iy Vk 6s OR eR Wis eee eh ee ee eS 33,823.70 
DEUCE LOO ICOTS ahaa es ebay Web kA eae eS ‘ 14,855.66 
ee ee Oe IESE a 4 ba he £3 4 He OS be eb ON 6,250.00 
DOC UNnCETE SG, «+ si ave es shee 04 ORS TSEC S 125.00 
PLT MEG ikea os PRGA REN ES wees SKE SA dee te 
DOLD PS Se ee eae 2,085.00 
Prose ULPORSOG, b+ we deen wis kOe es wes he © 1,052.65 
Interest and discount, ..+....4:; Terr eerie 1,273.45 
LOGESEOCN SF CHANTS aidiw sy <n e cave es eee 2,108.00 
Peers GS OnE lS sar 2658 «eh he has SY SUG Yr $5510.30 


Drawings, A (includes $800, salary allowance) 2,750.25 
Drawings, B (includes $700, salary allowance) 2,345.65 
Drawings, C (includes £600, salary allowance) 1,970.43 


&202,714.36 $102,714.36 


Their inventory of stock on hand December 31, 1895, amounted 
to $11,337.50. Unexpired insurance premiums $91. December 31, 
1895, $300 was paid for January (1896) rent in advance. 


Prepare a trading account (cost as against proceeds), a pro- 
fit and loss account and a balance sheet, also partners! capital 
accounts as of December 31, 1895, allowing 6% interest on capital 
and reserving 2-1/2% for losses on consignments. 


Ref. 1-2 
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20034 2 ,OOT2 & ,0083 A :ewolfot as esiralea yttheto Leubiyinat 


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: OT.3388,f2 TOT eee wa ee renee ewes esses se OSBSNOTUT 
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00.e8f£ Se Pee esrerareresereseosereseghaoasine MOl 
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va C&.08°.S (somewolls yrsisa ,008% asbufoat) 4 eSaiiverd la 
CO. AC 48 (sonswolle yrefsee ,OOT? ashefomt) £ <agriwstd 4 
 Sb.O88 Lf (sosmavolls yrsles <008). aabylomt: Oo 4sgninert ; 
DE.S£19 SOL 3e.3f3 sors + 
| : ot 
betmavomes .cC@l If redmoned breed mo foots to yrotmevat zted? . 


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PROBLEM NO. 7. | 5 
(N.Y. O.P.A. Examination) 


The trial balance of a manufacturing firm taken January 1, 
1897 is as follows: 


PG eT AD 5 W880 «550k ete enw wc oe ae oe akg met 
(SATE ee Sea Ces. "Se te : ace 
Bere er aC Wen Ae a os wie ene « Vs carci ee a 35, 000 

RRR Rea L ECE oem lierctn aha x ms VE ES ww «ws Shee Was c 38, 000 

Ra. ES Seem ass ©: ee a ae re we ae 95,000 
Stock on hand January 2, 1896, os.-6.--cecees< 15,000 

eS 5 Oka s.r erga gee eR ek ee Siw wo 24, 000 


Pees OG oo s'4 dawn eo en 2 2 @ ee ie Ce ee ye See ee 6,000 
Ree I a cg vic eo odinlak.o +08 sa ween 2, 200 


EUR OE Ctr es odes cscawecn's « eae a ats re ey ARAN D S00 
Serres ANGIE kgs 5 os cc ns ne a oe wie wns 1,200 
Ree a iang a vines Gaines Ca Ses a mies < wins ere ae 3,500 


Peeeeiree Sn ALIOWSICEG, cen nae ences cveeacene 1,250 
23 SA Pilatcintate makina lnc 1s itiey: Lee we 3,000 
Insurance (one year from July 1, 1895),...... T2350 
te A aE alg ae Wea os wee Ate nd see wid owes one Siw ek by ou 
ee Ss a Os. nS was. wide wine Sivlwis’s a 600 
ete OVETULAL Cp se sn eens vs OE Oe acre eae toa 5, 000 
ova Tye iar nn alpen te ele aa ie oh ERR a Pt Se 4,000 
ete eh i See Ts Sg oi a x stole ae ean She arden arate 25,000 
Pee erent YW Ts wc «0 ein o.ciacn le $25 air w oe w <3 ocean b, 200 


Cash CEE i 9a Se” gine ESS CR ay? Some ny ARR meee es ema k 8 200 
a ET na a psi cw ig ias a wa wd eleva miele Cen oe 7% »O00 


et tr ee 


165,500 $165, 500_ 


Stock on hand January 1, 1897, $235,000; each partner to be 
credited 6-o/o on his capital for one year before profits are 
ascertained; 3-o0/o to be written off book debts for discount; 
10-o/o to be written off machinery and plant for depreciation; un- 
expired insurance to be taken account; net prefit to be divided 
2/3 to A and 1/3 to B. Draft journal entries for closing the books 
and prepare final balance sheet and profit and loss account. 


Ref. 4-1 
184 


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PROBLEM NO. 8. 5 
(N.Y. C.P.A. Examination) 


A, Band © agree to start in business with a capital of 
400,000, of which A is to furnish $200,000, B $100,000 and Cc 
3100,000.. A is to have 1/2 interest in the business, and B and 
C each 1/4 interest, and interest at the rate of 5% per annum is 
to oe paid on excess capital, if any. A contributes $200,000, 

B $90,000 and ¢ $80,000. 


How would the capital accounts stand on the books after ad- 
justing the interest account at the end of one year? 








obi tests axocod srt no beese. ad aooos ioe a. 
fxsey emo to 7 _ #2 #20008 deoses 


v ‘ “i ipee 


Rice : 





PROBLEM NO. 9. 7 
(N.Y. C.P.A. Examination) 


The trial balance of the books of Brown & Jones, Dec. 31, 
1898, was as follows: 


Dr. Cr. 
Minnow, capital, .v. jan, ipeths Ou4 5 ee e e s fe + ,$4)500.00 
John eones, capital, Heresies Aad a } of QINERO Ee dees. Clak a 37,200.00 
Mise PAYADLE , 6 iiles maldiaes Te Pe ae ee ian oe ge EA ok OD ee 10, 000 .00 
moOUrs: Scnavyablegn, Sewanee. dae. sie, Fee ks 7,471.11 
Merchandise,........ Pav OPO CUE, 8 oo sie $120,439.20 
Deeornit on eared pve Pe. OS ONK. OS... ; 6,480.70 
Babee accoune Amet), Peer als. vet. dove. P27 PLLPMSS 
easy SUE y oe oe gee ee Pee ee eee yi 1,200.00 
Store expenses, including salaries,... 5,743.82 
BE Be OR Sg apy Pg ea eg CL ‘ 29,775.75 
eee 0 el wie eG I gS ee a ie 3 75210 
Purrevuee an “Li eturess fy per is ess Pie He 4 7,540.81 
Babee BOUGLIVARLEG {e000} gece va ccccass. ; 16,857 «27 
Bg So CT TS oe ee a a 175.00 
Sundry accounts receivable (customers 
. good 38,968.54 
" " " (customers 
(doubtful J 5,285.25 
Wn. Brown (drawings),......... ‘Pg Pee 3,500.00 
Wen Ones (orewi nes}. d wewkn ei ds 's.< Kose 8,500.00 
Investment bonds and mortgages,....... 15, 000 0G 
Interest on bonds and mortgages,...... 750.00 
Interest account (general),.......... ; 1,543.78 


Reserve account (for bad and doubtful 
debts) _ 4,757.22 


$343,339.44 $843,339.44 


Goods on hand Dec. 31, 1898 (at cost) $523,315.67. Sundry 
expense bills unpaid, $115.20. Charge off 10% depreciation on 
furniture and fixtures. Charge partners drawing account 5% 
interest per year. Credit capital account with 5%. Provide 
sufficient reserve for bad and doubtful debts. Prepare mer- 
chandise account, profit and loss statement, assets and liabil- 
ities ‘account. and partner's account for year ending Dec. 31, 1898. 
Brown is entitled to 5/8 of profit. Jones is entitled to 3/8 
Of “prorit. 









(nottentasxd AvT.D ait) 
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4 


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OO. OGG OE We. sakes ce vec ncalbaa sete cucu vs kegiaeiiamere st o nil | 
00.008 , TE @eerpveevvs ev eee PePPererrrerree ee ) ' 
60.000 ,Of age 046 6 oa me eyes lo.tal's tele ec ate leas ae 
if.fTs,* ikbedtane «oak le epee + ia eiece: a4) ay w aoe «ie beh eee 4 Ge 

OS. 28) 06L% PCr TTe eee ee eee eee ee | 4 ‘4 
OF.088,3 AS err sesso veeeee 80lee BO Srafocele yg 
SE.TLL, Tal | peestesunvonvecseegh@tOM) SUVOCE MOREE nS 
00.006,f eae © Pewee ee ee aid j 
&3.é47,¢2 0+ ge8lzsise paibulonl ,2eensdx9 store =i ie 
ayv.asy,eL cdebacedgudeveuececs che g@TQUNGG O28 CG uum 
OL cy 0 oe eel 4.dn ela a as Vik oo eh ee nt des0 75 
£8,038, ¥ oneocecsesvenee -SOwexirt bas Srvsiawy 
TQ.8AO OL sss svecserseverg(bOOg) ofdevteoet alfid 
OO.6VL pen eeesreue pescoeceneces pg SOGROGKS Ieqol 
| eremoteyo) efdeviener atnyooos yrbaue 
ba.sse.8é {boos | 
| eremovare ) m, " " 
2S. 888,a ( ruteoued) | | 
00.002, aere eww ewreevenaeanee (egntvatb) arora ne : 
10,002,.8 . ceccasevcevcoseeg( SQNeWetb) Ssenct AAOG ‘fi 
00.000,eL ooo see, BoRegttom bee abnod tnoutecval ve 
00.027 \leeeses GQQsgetom bas shmod mo tesreval Ue 
Sv.cha, 2 vessteveseeg( Lousneg) tayocbe tesresat (7) 
by {utéduob bre bed 20%) tayvoons evieseHh 
SS. aT <3 _ (atdeb 1) a 


BS. 855, 5238 bd. SEE,EDEE 


yibaye ,VS.GL8,823 (te00 ts) BESL .£5 .o9d baad mo abood 

me noftetoetqeb Sor tto ogtedO .O0S+dllG ,bisqny efiid esnsqxe 

&é tavooos goiwerb sreniasq sgiem .~eesudéxtl bas exist inayt 

eLitvoid .8 dtiw tavooce Iatiqso tiberd. .isey s9q vaetetat 

“rem oteqety .atdeb Iytédych bas bed tot evreses taofotTiva 

~Lidsif bas ateaes ,tnemetste eadf has ¢itomq .tmwooos es lbasado 
-8€8L ,f5 .o9C gatbas tesy tot ¢mvooos a! rendasq has tauovcs vottt 
B\E of boltitns at asnol .tktorq to B\e o¢ befstlias ot oa : 
a: ay * oT tT to° : ‘ 


hal 


PROBLEM NO. 10. 8 


Jones and Johnson are partners in business. Jones invests 
$27,000 and Johnson $18,000, and they agree to divide profits in 
proportion to their investments. At the end of a year their 
accounts show as follows: incidental expenses (including bad 
debts) $2,400; cash on hand $50; salesments salaries $12,000; 
cash in bank $1,800; accounts payable $7,416.98; bills receivable 
$2,650; taxes $950; Jones's drawing account $4,751.10; real estate 
PS, 000; merchandise (inventory) $34,000; wages of office employees 
%2,8753 Johnson's drawing account $3,631.11; bills payable $5,600; 
Commercial cable company's stock $5,000; balance in trading 
account (being gross profit} $38,743.21; accounts receivable (bad 
accounts excluded) $30,975.83; freights $343; discounts on pur- 
chases ipaeeQO; discounts allowed customers $760. Meke out a 
profit and loss statement, and after dividing the profits accord- 
ing to the agreement, prepare a balance-sheet showing the capital 
of each partner at the close of the year. 


Ref. 7-4 


(N.Y. O.P,A. Examination) 
L. H. iicDonald and J. C. Smith form a copartnership Jan. 2, 
1899, each investing $7,500. March 1 Smith makes an additional 
investuent of 2, 400 and McDonald withdraws $1,200. July 1, 
MeDonald invest $3,500 and Smith withdraws $2,500. The profits 
for the year are $4,800. 


Show each partner's average investment and share of profits, 
the profits being divided in proportion to the capital invested 
and the time it is employed. 

Ref. 8-5 


164 





























a | OL 20M MEIe ed 
(nottentaant ee i 


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ot etittoxq ebivib of oerse yeds bre a oer ae 
aledt tpey s to dae oft SA. .ateomoovat th 
bed giSbu font) asenogxe a os sanontoyll 
(000, S£¢ setislna a'momestse (OGY basd no, fast 
eldsevieast effid 78C.aLf,%3 eldsysq admyooos 10084! 
stetae deer iOl. fev, ee Sero0On eg ew etosmol. oar 
acqvolgme soltio to eegnw j000,22¢ (ytotnavat) patbn adovon 
7093,4> efdeysq alfid ;ff. £E5,00 treresos acivetbh rs ot ays 
mibsit ak eome Led :000,233 by s'ynsguce efdso etomen a 
bad) eldevisoer etrsoons ‘fs.a8% $63 {¢tiorg. peorg 3 mated) 
“Tuq 0 otmrooatd gods? atigior? -88.278,085 (bsbyloxe e 
8 tuo ofsM .08%¢ aromostayo bowolle ed cvrooekb rte 
ebrooos stitorg edt gatbivib retie bas sinonotete esol bags $2 
ibaa ostd wagsee® tesda~sonsied & stagetq ,tcomeerge edt ot pot 
»tesy ot to SRDS: edt ts rend tag dose, to 


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PROBLEM NO, 18. g 
(N.Y. C.P.A. Examination) 


x, Y and Z are partners in business. An interest account 

is to be kept with each partner for his investments and withdraw- 
als, and there is no expressed agreement as to the division of the 
net gain or loss. X invests Jan. ee $15,000, May 1, $10,000, and 
withdraws Feo. 1, $500, April 1. e600; Jan. i, a 060. Y invests 
han, "lL, 15,000, June 1, $10,000, and withdraws July 1, $500, 
aes oy ane 60s Z invests Jan. ale 1,000, and wi thdraws Feb. l, 

Beco, “April 1, 9300, July 1, $500, Sept. 1, 6350, Nov. 1, é500. 
By th terms of the copartnership Z is to manage the business and 
to recei ve. therefor 3,000 per annum, which is to be credited to 
him as of July 1. At the close of the year the business shows 
a gain of $12,750, without taking into consideration the matter 
of Z's salary or the interest on partner's eccounts. 


State the amount of net gain after all items are considered, 
and show the balance of each partner's account when finally ad-+ 
justed. Formulate the proper journal entries for closing. 


PROBLEM NO. 13. 
(N.Y. O.-P.A. Examination) 


Three men, located respectively at New York, Chicago and 
Minneapolis, conducted a-business as partners. The partnership 
agreemens recited that the New York partner was to receive a, 
Salary of $5,000 a year, the Chicago partner a salary of $3,000 a 
year and one-third of the profits of that branch and the 
Minneapolis partner a salary of $2,000 a year and one quarter of 
ZO6 prortits of that branch. Six per cent interest was to ve 
allowed on the capital used in the business, $500,000, which was 
employed one-half at New York, one-third at Chicago and one-sixth 
at Minneapolis. Repairs and renewals were to be charged to plant, 
and a depreciation of 64, per annum was to be allowed. Interest on 
berrowed money was. to be distributed according to the invested 
Capital at each branch. Plant Account at the beginning of the 
period showed as follows: New York ¢250,000; Chicago “$300, 000; 
Minneapolis 715 50,000. Repairs and. renewals paid Seen tne year 
amounted to $235,000 at New York, $30,000 at Chicago and #15,000 
at Minneapolis; interest on borrowed money $15, 000. Subject to 
these items, the profits of the year amounted to £50,000 at 
New York, $35,000 at Chicago and $25,000 at iinneapolis. 


Complete the profit and loss account for the year. 


Ref. 18-1 
164 


isebitd but bee aigouteorn, eld ‘to somes? 
BLE 2 


bine Sie OLg ‘'ehf 000.08 Pag ht Prehyie 8 
“odae’ ct DOE 


oe 
. ba 


Baa Pada pmeni edt egarnen lot Bie i pagpecng dor 9 | 
Of DStibots..od ot of dokart gawans ‘789 O00 gs: 


a biando. orm Revd tin toFte, “lag Pave te Nish 
tm, vAteG ed ffercis? FALIOOOS a*enrir sy manei ae 
. oats nOle tat eel CP LED: maha aut vegans ef 8 sos 
tk oO HOAOR, | 
‘Cot tort ness eA Fad coke OY 
| Mite omeolt rit) . ~e2Oy: welt -yLeovitdecaes, Papo e 
tdavsodreG etl. . BTOot iss es ‘oaemt aud. 2 pe 3 
t-evisoes of ofe ppetatn axoY well ent 2 
O00 02 36 yealre s ceatteg Cpsotto omy 199 
etd bas docexd saddest Touy, apt! 
4 wettaupe gmo bes teey ¢ 000,83 to yualea s 
od of saat, tesregrt tita0 TO4 RED MA Ss torrie a cae. to. ae 
2 fo td? .O00,00cy igat patend od «tf; beag ‘Lad iqne. auld 
-{iets~erte Eth, ogao tao. tz ii atney ret, ta Rut 
\g@te lz OF Degrado .ed ot erom ofdvores bore octedeh 
mo tacrstal skewollse ec idl aot Me LON: da ta mete 
hbeteeval est of galbadcooh Rothdiare p. adi o¢ 627 
ott ix taatged off da “ gamr0008 Taek yalenaat 
10000087 oncotdd 2000,0dS 9 aot wall, "gurtoe. Ot & 
Secey odd arivuh bisy elewenst fro) ere gg gOS ke 
OOO(2L bee onsotdd ga O00,0ey eek, * eee 200 Oy» 
ese arer, 3. 



































tauoooe soduadert sth , sesmtand nt ips: 
to so 19tyEB Byscglt ay 68 direnedt ge pacesryas 'o + 


soueet ig gt TS Fars 1 F 
4000 vet emoxr bid i wb 000, OLe'«. 


Rs a art pews Pi r mi or snal edeoor 
“Seam oe sof MOOR vue *tas8 aaa ae hie 


evois eos niagd orit ZESY ert To eects ene : wnt 
tettan of% gotterobteroo: ofa gabsteag tworttio Olt 8 he 
| BiovCcos Ba teagErg GO amano outs 20" 


at Posts  sQCO ely > Lestoar bevosted ‘#0 


\ J . mt a 
eit Dogeenarit: re ‘900 ae “bat a 


PROBLEM NO, 14. 10 
(N.Y. Q.P,.A. Examination) 


A, the party of the first part, enters, March 1, on the per~ 
formance of a contract for $50,000, payable in two instalments of 
685,000 each, the first of which is due on the completion of a 
specific part of the work but subject to 10% to be retained by the 
party of the second part me _eerobe te for the continuation of the 
undertaking; the second, gether with the security retained as 
aforesaid, is to be paid bed 33 acceptance of the completed work. 


A has a capital of $4,000 available for payment of labor, 
Which proves insufficient. He therefore takes in as associates on 
April 1, B, who contributes $3,000and C, who contributes $1,000, 

B and C to share profits in the proportions of 3/8 and 1/8 re- 
Gnectively; and to receive interest on capital at 6% per annum. 


The first instalment on the contract falls due and is paid 
May 1, at which date there had been expended by the con- 
ped thie for labor and incidentals $7,602, and obligations for 
materials and supplies furnished on credit had been incurred and 
were outstanding to the amount of $13,900, of which all but $1,500 
are forthwith settled from the instalment money. 


On receipt of the first instalment, B and C withdraw their 
al and realize the profits earned at the completion of the 
stage of the work, leaving A to continue elone, it being 
fully estimated and mutually conceded that a further outlay 
(86,158 will _ be cepa i to finish the work and cover all 


4 
= 
ea 
3 
@ 
oy 
}-+ 
oO 
QO 
O 
3 
= 
5 
09 
@ 
Ho 
i?) 
je. 
4) 


Show by skeleton ledger accounts the cash payable by A to B 
and C, respectively, on their withdrawal from their partnership, 
and state the resources and obligations that remain to A on enter- 
ing on the second part of the work. 


Ref. 235-5 
154 


oz 2 oe 
(agttantuext hota a rot} 


~req sdt no yf dorsit <etstas tre age t or ) ¥sasq oct Snemee 
to sitnonictent ort ot eldayed ,200~ ot 2. BI MOO NZOL 
£ to soitsfqueo ods mo egh af do Litw to terit ed? 
edt yd beontster ed of COL of toetdya stud Atow- ad? to 
ent to moisdeyalsnoo odd to2 ytitvoes es tisq baoose 
es bsntster ytirvess odd difin redtegos se ee *y 
-dtov botelques eft to sconetgso0s Lanit mo bteq 9d — Ra! 


 gwociel to tromyen tot efdetteve 900,89 to y Let tas e 

no estelgoane as mt esist srotereds oH be PR Ree $Y oC 
,000, £5 estudiztaco ow _9 bme000,o) asetudiztaoo ort a gf fit os 
w57 @\C brs B\E to envtdsodose od? a! ed} iedy o<sae Gh a Bae mre | 
emetic Taq ‘S te Lageqee no has svisoex oF Eas whevitosqe — i 


bisq ef baa eb elie? tosxtnos acid so trometer! gert{t eft oe 
.=09o off yd bebmeaxs aged bend exedt otsb dotde te ,f ysl ae ‘oa 

rot anottagiido bas ,S08,%) efLesdasbiort bas todel tot stotoar? a 
Sas ,Pottwont need bea tibess to bedatawt eetiqave bas aletrotem = 
d08 £2 tud tfs dotdw to 000,623 to ¢ovome sd¥ o¢ nalbostetyo stew 
— eNorom tmeufetant edt sort bofttes diivdirot ets | 


leds wethdiiv 0 Bas @ ,tnemfeteni settt one to tqieder 0 \ ee 
oft to mofte{queo edd ts bontss attiorg of? exifest bre. fetiaco © @ 
 aittted $f ,.omols exatinoo o¢ A amivsel ,arov eft to egets Sexi? | 
yaltuo sedtumt s tedt bobsomoo ¥lflentum bas bedeuties Liutorce a 
éfs z6voo bas drow sdt delntt ot tnsioktive od Iiir sel, S67. 36 
-sotomegaitmoo efdenceser a 


Got A ye etdewsq fans ext etnooos t9abel notefodts a wed” i oat 
.<iidarentisq xiedt mort Lewerbdtin tled¢ mo ,yisvitseqeer .D ‘eae , 
“1Ssvae mo A ot minmez todt enottsyiide bre ssommosget sd? etate ee! 

otzow od? to fz £4 broces: edt mo 



































bot 


PROBLEM NO. 15. 23 
(N.Y. C.P.A. Examination) 


A & B are partners oming two retail stores, one in Paterson 
and the other in Newark. They agree to dissolve partnership as or 
July 1, 1913. The two stores are valued July 1, 1912 as follows: 
Paterson, & 4,573.50; Newark, $3,600. On this oasis B contemplates 
purchasing J Ats interest. On being furnished with the following 
data, B requests y6u to inform him if the Sriventory or the 
Paterson store January 1, 1912, was correct as A claims: ~ 


Value of the alleged inventory January 1, 1912, in the 

Pateroon GLGBGs «Sue aie <n aks sa s+ 0 so eee Ldn Batis pee 200 
Purcnases for both stores, January to July, paid Lote. De kee OO 
Due to creditors on account of both stores, July 1,... 1,500.00 


ree one eee CPP EO Oa a hw os aka x90 so 6d ED Spin Coad Lo ew 
VASheeeee es PA LereOn BLOTS, 14 «sma e ees n ay ee aa ae geo «OO 
Purchases Pawerson PERE * January +0 SUA arn gavaonO 


Profits on 50% of sale 


Prepare a statement proving whether or not the inventory of 
the Paterson store January 1, 19128, “as correct. as’ stated. 


Ref. 35-5 
164 















fr | Ie Of eee 
(rol sontmext . eso 


_Koarst at mi omo .aotose fister ord prio a 
+088 Gidstenttaq evfoseth of setae yedT 
ae wWoiflot as Q£Of .f yiul bettlevy ers sezeds 
et en). & atesd atdt 20%),003, 6: } 
aie odd ~ bye pap gate 


edt gl .hler 4" yreunst, evedievl agectel 5 w! 
60.098 oe ieee. Oe re ee ar eho ree 
(08.861. «0 .,20k Hkoxy .ylul of yreunsl .setota dod ‘cot 500 
OD.00€.£ ...,f yful .dstote dtod te ¢aucoos ao exotibero od 
OC.ava.t HP PEN ee eee ee ives oe ee dee MOTE grere wastes 
00.6 a0L,5 weeny ally ais oe a tere v econ ss g@tote. soatotet .eolse m1 
00.6858 es or = Ae ER oF vreunat “e0TOts moatese]el ,acescon: 
a eelsa ‘to Oe mo attiot 


to Yrotasvat edt tom to arr bresedste e peer *: i‘ ae 
betate es toaz700 aev ,Sfof ,f De unl Mi th Sia cade one ; 





sar 


PROBLEM NO. 16. 12 
(N.Y. C,P.A. Bxamination) 


A partnership was formed July 1, 1907, to acct as factory 
selling agents with capital invested by Baker 75,000, Draper 
or Soe Fowler $8,000, profits and losses to be shared in pro- 
portion to original capital investments, no interest to enter into 
partners’ accounts. 


On December 31, 1909, the books, which had been badly kept, 
shoved the following balances which were not disputed by any of 
the partners: Baker net credit $3,000, Draper net debit gsords 
Fowler, net credit $4,650; cash in panke and on hand An04. 20; 
expense debit $4,550; interest eredit $250; accounts receivable 
factories $2, 240; investment account ai3, 000. 


The iy holds a number of one year sales contracts under 
which the minimum puaranteed will net $15,000 in commissions. The 
factories make shipments to customers direct and send monthly 
Statements to Baker, Draper and Fowler of shipments and core 
missions. The investment account represents holdings at par of 

75% of the capital stock of a company on whose books: at the end 
of 1909 appears a deficit of $3,700, 


Baker and Draper have agreed. to seZl their interest in the 
business as of December 31,. 1909, including the firm name, to 
Fowler for 200 cents on the dollar, taking notes covering 18 
months, 


Prepare a statement showing the settiewent between partners 
on December 31, 1909, and a balance sheet as of January 1, 1910, 
of Baker, Draper and Fowler. 


Ref. 41-1 


Sl 








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zeae | ot ero tet Lie oe ord 


OT cr ae it ack ‘oF i bas 8 
otal Totnes tasted ee " weaneeFeeCg, 


mae 

to ar Vd Bete Eh 84 SrOa' to ldy weg 

OVE, E> Geer an ae 123 ay ‘¢ wae 
(08. SOR Y Shred co ; prise eae eG. 


ef ylbsd m2 med a dot eatacd. ease 
ra a 









a 
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ont — & TO. 36 Pik Go "ah i She. tow ie nN FY Hs 
VL se begs cy ee) ni 






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age he v#hof teh 

CARLIE ran bed * oe ak 

edt at tegreta {hee at xogest. 

a a ae fa ik a, AE 

oF (om ee, ey ge pe arie ; Pine 
‘miriievés. | eC) Tas * 
A te Nees 


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rays ties ee “eit, 





atontiog Moawted toghel ties edt gotwode. ic ste a te 

a rar al Me } : fy ey leo" a Te a ach 5 re es & oa ft 

OLCE LOPE ER Be PANNG RUN SES op tis ae OCT ALR ras 
me bs 


Meet ee AS 4 





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a | 
ay 


PROBLEM NO. 17. 13 
(N.Y. C.P.A. Examination) 


A and B are engaged in business as traders. A offers to 
purchase B's interest. It is inexpedient to take an inventory or 
to examine the books. The following facts have been compiled by 
the pookkeeper and are to be given full credence. The following 
data is submitted to an accountant from which he is requested to 
prepare and to furnish a Profit and Loss Account and a financial 
Statement showing partnership interests. Prepare the statements. 


CASH TRANSACTIONS 


Ate SYITEG Creve. «a0 sus! ab 6s 6 5,000 Cash payment for mer- 

B's investment,....... ee iy WO CHEMGIGEs.- seus ae $98,400 

Cash received from charge PXPONSEGR gee ces - ss 008 800 
Ea A ae a ee - 98,000 A's drawings,...-... 14,000 

OL Ce oe save OZeOO”” “S's Cragemets ase ss 1,500 


OTHER DATA 
Accounts receivable, ....+4. S10,000 Accounts payable.... 9,000 


Ref, 42-1 


















SL i ae on “a 
: | | (so rtentmexd 188 fe a) 


. of srstlo A .etebert er esentend at £ 
to yrotneval me est o¢ sock gatvot tos ats 7 
yd beliqmoo meed eved stos 
arivolflot eaT  .eonsbheto Lfud 
ot betesupet: al ed dofdw mort ot 
Lstoneait s bar snyoook aeod Bae trtoxd = dete 9 
-Stnemetsta edt ersqest Stier? st ctaevoadeog BE 












“Tom as dromysq pee, A 0.2 Rod ocd od ap ogee mi ath 
003.88 i ld dat My -aeibaado. o \ S.  * he + os, bee eee ghoont BOVE. 7 e 
008 Sees eee es gQSGMSGRa ee ge Re ‘. ‘eptcdo moxt ‘bovisoe dest. 
G00 , dL wees eeg Ganiwethd ats QO BS vars ecereeneesenee edd ne 
(002,£ f acichabaea bit a'g (008.2 NRE RU ey eh 


a ‘ a f % hee us Mi kaa #6* 

| ATAT muro jn . we bg sigh Fi ; 

M utes 
OOO ea! Fu soldered - odngooeh 000,088. eked ..eldsvisoe at 
diy @ oe Pe wy 


ae f 
fia" ; _ y, sx, | re " 
| 0s GT ata a eh 
_ 4 ‘ i: “ Fa) A 
t. j 
‘ y ; + : , : 





PROBLEM NO. 18. : 14 
(N.Y. C.P.A. Examination) 


The capital of three partners, A, B, and C, in a manufactur~— 
ing business January 1, 1896, was $26,000, of which A owned 1/5, 
B 2/5 and C 3/5. On December 31, 1896, one year thereafter, the 
condition of the business was found to be as follows: 


ASSETS 
NeGl SBtALS Si WAIN sa. ok ws ss Meet w ala 8's 40 . $15,000 
Pate OfiL ECE Tad wale eas os + 1s Gee Re 3 ae aa 7,000 
SROCK OF DAG gw erwin ance wean este ees em Me ms eee eens 8,000 
ris SEM eek ag emied Gk alain sdk ones ere RC Ne 64a 6, 000 
CR Rg sae aie ae eles em nk 6.5 <oX,.» ait eons. < + snd 2,000 
LIABILITIES 

BesGatOre, Dilis payable. svssss0es4see wie eee > $8,000 
Partners’? withdrawals: 

A A imciudinon intereat ), +--+ dare. an eas $1,500 

B lincwuidingd interest )y.... . coer. gue + ee 1,200 

GS (inehuding interest), ..1 «+ cone swat 83,000 4,700 


After crediting up interest on capital at the rate of 6%,, 
show the net result for the year, and distribute the same, in the 
proper proportions, to the partners' accounts. Prepare the in- 


dividual partners' accounts, showing the condition of each at the 
end of the year. 


Ref. 45-4 
164 









~wiostunsu s at ,o bas .d .A gartentireg oordt To Lett 
La\f bonwo A doidy to 000,889 asw ,a@3l ,f yrsuash e 

eit ,retteersd? rs0y eno ,dCBL ,L& redmsced a0 -8\S 0 | 

sewollot as ed o¢ Aavot sav eeontand | to 








: - - BTHeeA Sere: - jaa abs | om 
OO0.8IG ow wen see ee ssnseencenpegammibiivd bas etetao feof “oe 
900,° Se aed seem ewe eee scutes caew céue VE MNECORM baa tnsll re iy th 
000.8 Bs, ime ech @nae 6 Be oes ee ees ose 6 gee Ito foots — | Pade | ‘i 
000,93 Sb hi cbs le Maes 0 40 RUE Sais 00h aan ae or td Q = anh ' 
002d .§ ” #eeeeen Se un’ 6 0 Te ahaa de. cian ee fa) aes. an 
| purtidreata” . 
O06 .& Ban ease« «'s', » 4 6 o-ahielaes ere niga ae alf{id ,erotibero i 
) talavertbdsin terendrel 
ee ee cocsseneg Geetedal seihutoas) 2 oi 
006 ,L ee ee | teetetal gntbulont & ey Mr 
OOT Le OOO Scere er eereraceeylteotedat gatbulont ae «onl 
«wd to stet odt te Ietiaso mo teetetal qu gatvibers eeetA Sek 
edt nt ,omea odd otudittealb bus .xsey edd 10% tiveor ton edd wode 
“at aft ereqett .atmrooca ‘arentrs¢ off of ,amolszog TeqEwMge: «| 
edt ts dose to moitibmos edd gniwode ,etmvooos “eremtreq TeubivibO 
ath Ae 


bol 





PROBLEM NO. 19. pe 
(Washington c. P. A. Examination) 


H. Pratt, F. Jones, and J. Todd entered into partnership 
on wuby ay 1914, Pratt brought in as capital $15,000.00; Jones 
~10, 000. 00; and Todd, ¢5,000.00- They were to share profits 
in the proportion of one-half, one-third, and one-sixth, but 
as Jones and Todd were the working partners, they were to be 
credited at the close of each current year, by way of salary. 
with the respective sums of $1,250.00 and $750.00. Pratt was to 
be allowed to draw each year, as against profits, $3,500.00; 
Fones, $1,650.00; and Todd, $1,350.00; interest at 6% was to be 
charged on such drawings. The partnership agreement also pro- 
vided that Jones and Todd should have the right to bring in 
extra capital not exceeding $8, 000. 00 each, and that upon such 
capital they were to be credited with 6% interest. Upon clos— 
ing the books on June 30, 1915, it was found that the partners 
had drawn as follows:- 


Pratt : Jones Todd 


Berta «< 5 wy OUs00 fur. 1... “400.00 AUGe bos + » $300.00 
BOY. 2s «+ « 7EQV00" Bept. ys. '. 350.00. Septed - « 250.00 
PEGs, Ls « « 000800 Met aor wer. ° SOO. 00 © Retard a « ) 400.00 

Dae BW. a. , 400.00 Ferme a < 100.00 


On October 1 Jones brought into the business as additional 
capital the sum of $1,200.00, and Todd, $3,000.00. On closing 
the books at June 30, 1915, and before the salary or interest 
to partners had been dealt with the balance to the credit of 
Profit and Loss stood at the sum of $13,000.00. Make the clos- 
ing entries and prepare capital and drawing accounts showing the 
exact position of the partners on rina Ly 1925 

16 










b ‘ ’ a 
v= f 
re, | I 
rer. 

Li 
euiy 


oan n° Ay ie! 
a 


al | o OL Ou MAAORT 


qiderontiucg Otnt borsetie HOT VG Drie ,2onoG 27: 
venol ,00,000,6L° (ctiqeo es mi stauord tier 
etitorg otede ot s1ev yedT +00,000,8) «hbo? bi 
tod .dixie-ano brs ,brititesno .tfed<eno to fo SP rg 
od OF Orer yors ,erontreg galitow sit exw bho? bas sono as. 
-Visige to yeu xd s789Y tmetrwo dose to saolo + #8 botibeto 
of asw fdexT 100.087) bre 00.088.£° to anwe evitosqeer odd atin 
400.002 .80 .atiiorg Jentsgs as ,xrsey dose werd ov bewollis sd 
od OF sew 28 ts teorstnt 300.085 ,.f) ,bboT bas ,00.088,1£2 ,aso% 
“Omg osfs tmomeorgs Gidetontasg eff .egninesb dove m0 Begtsdo 
(ff aaiid ot tigi edt oved Biyoda bboT hae semot sedt bobliv 
Mosa noaw ted bas +1969 00.000,8¢ gaibesoxs tor fstiqes stixe . 
w80lo moqgU ,taorstat 28 dtiv betibers od o¢ orev yoedt Istiqss — 
Cronsteq edt sveds bnyot apw tt .aLOL .0E eawl mo exood oe 7 
os “;ewolfot ar mwatb bed 





(e. ee 






oO 


mogorg off ni 
























BbOT sso AA | ttext 


& eae Lf «BLA 00, 00° eae 4 mark 00,002 a. ‘e * £ e?qo8 
00 08S = . L.tqe2 00+ 02s - . £ «¢q98 00.028? * 2° @ £ vou 
‘ * * . £ vou 00.002 * * * L . toO 00,000,r *- * * be * ood 
* hae 24st 00,008 * @¢ «@ Bi «ded 4 Del 


fanottthbs es aeontend eft otnt tdguetd eemol I readetod nO 
gitfeoto m0 .00.000.89 .bboT bas s00.008,f% to mue eft Letigro 
teotetnt 10 yislee edt ototod bas .2rer .O€ eau te avoed sd¥ 
' to tibero edt o¢ somsled oft athe tleeb esd bed ersntxeq of 
~60fo edt exsl .00,000,Ef¢ to mye edt ts boote eeol Sas thtord 
edt gafwode etnyooos grivexd bus isttqso eisqerqy bas selttns a 
| eOLOE .f baat arentisy edt to sotttaog tosxe 8 


PROBLEM NO. 20. “Pie 
(N.Y. C.P.A. Examination) 


By the partnership agreement existing between Brown & Gray, 
Brown has two-thirds of the profits and Gray one-third. Brown's 
capital account stands. credited $50,000. Gray's capital account 
stands credited $40,000. The assets of the partnership consist 
of the following: 


Factory and machinery, «...-.+.++. ~- $75,000 
Stock per inventories, ws. cesses 30,000 
Agcounts receivable,....ssssaees é 15,500 


The liabilities. are as follows:: 


Acoounts with oregitors, «esses... 15,000 
ROME PORTALS oie dss 6 eae eemne & 10,000 
VOI VEN, edhe ec oie ein soe ele 4 : 5,500 


Current bills receivable have been discounted by the firm at 
the bank to the extent of $9,800. Brown retires from the business. 
Gray takes over the liabilities as above mentioned, and the assets 
at the following agreed valuation; 


Factory and machinery, <a> oss ale . $70,000 
stock per inventories,..... » ence te 26 ,000 
AGCOUNTS TECCIVADLE, « « s-vivieiain stale 14,000 


An arrangement is made whereby Gray receives $500 from Brown 
for accepting sole liability for discounted bills receivable. 


Make up a statement showing the amount that Brown should 
receive, it being understood that losses on capital are borne 
by the partners in the proportion in which the profits are divided. 


PROBLEM NO. 32. 
(N.Y. C.P.A. Examination) 


X and Y went into partnership eight years ago. By their 
articles of agreement division of profits was to be four-sevenths 
to X and three-sevenths to Y. During the last five years the 
several annual business statements signed by both partners show 
that the profits have been divided equally, the difference being 
an advantage to Y of $15,000. Y died six months after the date of 
the last balance sheet. The executors want a statement of Y's in- 
terest from the firm's books. It is agreed that his capital is 
965,000. Show how the accounts should be adjusted, the profits for 
the six months since Y's death amounting to ~12,000. 


Ref. 7-6 
164 


él 



















" (moiventasxd .A.I-0 Tol 


2 aba & mworh msewted soitelixe tuemeorge qid 
mvorvd ,btidteemo yexD bas as btorg > 
tauocos Istiqso etys1td .000,08% bet tboro af 
tefonoo qidetentieq est to atoees odT . 


000,895 ..... tes soo sttenitoam bas ysosost 
000, 0 Peeve - @efrotaoeval rq aoote iN ar 
002,.2eL eee nee eee arog Oldevioner stomooas ae F 


‘:enreglot az exs esittiidarl oat 


OOO,8L sn. eevee BtOP2BOtO ditty avnuoood oe ret ei 
O00 ,Of Pune eeemeneeeneses  BLOLYSG efita Sten: 7 oag 
003.2 po: conte Rm RRREe te Semnene anivd Fears ea 


is 7 A) a 

gs mitt edt yd betnvcoslh need evad eldevieoet ellid taetmO 

e380risud odd mort sarisver aword .008,6¢ to tmetxe edd ot dnsd © 

eteses eft bne ,benottmem evods es esttifidsll edt 19vo eexst ys1O 
;moitsufsv besrge gnivofi[o? edt ts 


000,08 .....ces.-eqhtemidonm bas yrotout 

500, 86 conevowes ee g@Oltotioval teq Foose 

: 000 aL ** ewe ee ee @ese idsvieost eatmyvoood 
rod mort 0085 esevisoe:r yard yYdexrede obam el te mA 


dnonegnette ‘ay 
-Sldsvisoex sllid betnyooath tot ysilidst£ foe gritqeoos sot sy 


blyode aword sedt sovoms ot gniwode trometsts & (Wy exsl | 
smtod sts Istiqso ao aeesol tsdt bootetsbny sated tt ,evieosr 
«hebhbivib ets atitorg oft Sokdn st ap SE RORNRS edt axondteg we ay 





- | a0 tem ae 
okS ,OM MaaORS . Ag a a ‘ : 
(mottenimord .A.7.0 .Y.1) i. | 
tied? y& .oge eresy trgte Tideseateag o#nt tnev ¥ ie 3 | 
| Siitnevse-wot od ot sew atiiorg to sotatvin tneusetgs sd otis — 
edt @zssy evit tesl oft  satiwwd .¥ o¢ adtnevee ies oF 





tot etiiere edt otari bs od biuode atmyooos edt wrod vode ¢ 
eSly oF yarenenes dtseb ety conte paige 


SOL 


PROBLEM NO. 22. 17 
(N.Y. C.P.A. Examination) 


A. J. Smith and J. D. Gray signed articles of copartner- 
ship January 1, 1895, each investing $30,000 and agreeing to 
Snare equally the losses or profits of a trading business. The 
copartnership was to exist for five years, and shortly after it 
terminated Smith died. A trial balance of the accounts of the 
firm, taken January 1, 1900, was as follows: 


Aed. Smith, drawing ac- A.ds Smith, capital 

BOUT tevies vibe casa tee Seo, 746.00 BOCOuNt,.++..- & 30,000.00 
J.D. Gray, draving ac- JD. Gray, capital 

CCAM T ice.» & pear ckade Ge 2a 13,890.00 BCVCOUNGs ++ ees. 30,000 .00 
MOrcnandlacpa-.s sees © i 55,000.00- Profit and loss 104,695.00 
Horses and wagons,..... 15,000.00 
Furniture and fixtures, 5,000.90 
CRG 5 aa cae wae eee tk : 2,007 +50 
Mortgages, -....-+es5--- 10,000.00 
Bills receivable,...... 8,000.00 


Accounts receivable,... 09,791.50 
$164,695.00 $164,695.00 


The surviving vartner took possession of the merchandide, 
horses, wagons, furniture and fixtures, and continued business 
under his own name, at the same time acting as agent of the firm 
in realizing on the remaining assets, September 1, 1900, he re- 
portec to the executors of the estate of his late partner, that 
he had collected $35,000 on open accounts, $5,000 on bills re- 
ceivable and ($1,650 for interest. His expenses had been as 
follows: clerk hire $500, lawyer's fees 1,500, miscellaneous 
bt de he had made sundry allowances to customers amounting to 
ws . ; ; 


Prepare statements showing the condition of the respective 
capital accounts September 1, 1900, and state what amount of cash 
is due from J. D. Gray to the estate of his late partner. Also 
prepare balance sheet for same date, 


Ref. 93. 
164 


vE mi | 88 0% 














~ronttegos to sefolixs bengta yer .0 +L. ba Webhee Goh 
, BAF yYleure oxurce 
WeGiterensasjs9 
ay ine beteninced =, aos 
mel golst crit 


tf astis ylttode bas ,cresy evtt tot tetxe ot 
odt to atayooos eft to eansled Isiztd A 
sawollot as asw ,00CL gf yx 


| Iesiqso ,dtime? .t.A | ~oe yaivsub 4! tm@ sted 
00..000,.08 Go s+. , pOOOS ADer.GG S cdheeeinis i pa eal 


fstiqsd yyst) .d-b . | . 08 gaiveti) yer) .C.t 
00,000 .O8 ; «seen e gt IUOOOS 00.008 ,.S4 ee tayvoo | 
00,369, dOL esol bac vt tor? : ) 000 ,.cé eee ee eee nee .9 tbasdorelt La 
| | | 2000 ,.eL eres geMoger bus aseroH — 
00,000 ,2 ,comwdextt bas owttoxwwt 





4 02.738 .S @oreeneees Perererrr yy) ais 

00,000 ,OLf Perec nees ere n OOQEQTION ) y ea 
00,000,8  .e«-++,0ldeviooes afftd pais 
(Oe Ler ee ones OLdsviooet atayoool Ae 

; aN 

00.283, 295% 00.368 pL. | 
.2hibnedorem sd¢ to moteaseeog woos seatuec acivivuve edt a 


esontaud Bounttmoo bas ,sommexti be otudinxwt ,enogev .seetod 
mrit oft to dnegs as gaitoc emits omsa oft te ,omen avo etd sobay 
~ot of ,O00C@L ,f redmetqge® ,ateses gnintemet off mo satsifee: at 
tends ,xontisq otsl etd te etetes odt te arodvoexs ont of reap 
~er ailtd mo 000,23) ,etmyooos aéao mo 000,.a83 bovoolloo Sea se 
ac mood Ded esenequs ali .testetat tot Od8,.£0 bas efdartso 
avoenslLovetm ,00d,£5 soot a'raywel 0084 etd xwxelo sawol lot | 
ot guitavome ersmotayo of soonsrolic yrbawe ebem bad ed ne res i. 
‘ . ew 


ovitoogasy edt to aottibaoo edd gntvoda efnenetste otagest 
fgzo to savoms tetw stste bas .OO@L .I tedmetqed atcyooos Latiqaes 

CaelA ,.xomtrsy etsl ald to ststas oft oF yerO .2 .% moxt ond of 

| “ea e9t8H ompe tot teede sonsisd eteqoerd 


 ABH@ «ton 


ge 
ine hee Pe” a9 
Sea 
hi # a, 
pees 
. Pp ee Ok a 
: e- seen Swe ‘;* aera 
ieee oa OR & 


f ; pe & » mm) apatie et 
B., .. 


PROBLEM NO, 33. 18 
(N.Y. C.P.A, Examination) 


Wright, Barnes and Wood, partners sharing profits and losses 
in proportion to capital, viz, Wright one-half, Barnes one-third 
and Wood one-sixth, decided to dissolve the partnership at the 
close of business, December 31, 1900. A trial balance of the 
firm's ledger at this date showed the following figures: 


PP PENUBLCE DIL LED ic ene: ste wae « ..mnc eee ss © 15,000 
BOUNCE A, . CADIS! , om ns oda wn EP are er a Oc ee ae 10, 000 
MOOG.) CODi 4a lat 44 eae adie EE bin,s 4&4 %'s bgid ee Ee ae a 5,000 
PONG SING MOTEL CASS) pada bin was cae 04a sre eae ~. 26,000 
Merchandise on hand January 1, 1900,.......... 15,000 
BOP) PUT SRST iT Re yin a woe ak nek oa Oe 6,000) 
C2005» «skeen $s ews ee eee 2 eee emer e Po ‘ 4,500 
Bills,receivable,..... a eee wiry we * £0,000 
PS OUNG Se POCCL UA ONG 64s eed ce ens ee ey cs alee » 64,000 
So laa a G4 & dw 9 W vs we 6 mae blag 3 sw oe 30, 000 
PM PAVE ONS ber se cas eds be hae us seen ee : 20, 000 
eT Ce POCTUER soe eves caves eces eels Tere Ce 900 
ere CS ais ha (nog wk nc es a ie alues $s = 0 6 o elon “% gogo 
Nee * bie 46h y-4 44k hae ewe ea vo »13 Months - 395,000 
Pia CUMBEOs isu oe so 0k ow 0 is ele wae & “aye " be O00 
PEELE, +. 002s SE en eae ee . n 4,500 
BALAPIGS ATG WAGlGs.e.sases Tee, eer oe " 13,500 
ee re ORONO sh es valent leu.e «elles » « n 3,400 
Rar ee et. pS k's ie daca. hee Pa ; " We od 
UNM ES yids dig 8 8 n'8his eR wy <a " 8, 200 
PASCe Llanequs GXpensee, esis vein aa sces " Bes 88 
MRICGG, GTAWIne acoounty<«+.,.esaeesee seg eeee 5, 000 
BATHES, OTAWINe ACCOUNT, en ee cee ewer eee seen - §,000 
Coreg LT SOCOUNT Wake w sews re eo heehee ss we 2,200 
($317,400 $317,400_ 


Merchandise as per inventory December 31, 1900 $17,400. 


January 1, 1901, Wood soid his interest in the business to 
Barnes for $7,500 cash. The liquidation of the affairs of the 
firm was completed March 31, 1901. Furniture and merchandise 
realized $18,000. Bills and accounts receivable amounting to 
$7,300 were found to be bad’ and uncollectable. The expenses of 
liquidation were as follows: 


CLERE EG: os ve ib coisas eet bee. & 6BO 
Legal fees and commissions,..... 1,450 
Miscellaneous expenses, .......2% 900 


Prepare balance sheet and profit and loss account, December 
31, 1900; also partners' accounts, March 31, 1901. 


Ref. 10-1 164 











Sf Ans | as 9 Olt on uiconthh 


7 


(notdcatesxt rheD Te, 


sosaol bins. ett ioxg gatiedo esantepk boot pre asrred 
bridt-ono esaxed gtLasi-on0 gdaixT tv.  Lettqes 6 ‘ 
oft te qiverentzed oft evfoaalb of bobtosh ,dtz £0 

aft to oomeied Lefts 4 OO8L 4ft xodusoel ,senleud — 
seexugit gaivollot ert Bewode oteb atdt te segbe: 


‘ A er oe a 
000..éLf wf RR ‘ 
o00.,O0L Sie hb ene ow O88 48 4. OMY aa gene) eee 


900 .¢ ae ewe eemere les is eee FRE ee. 
000 , df Oe vv. a-e sly ee ee een oasad tom bas, baod 
O0<AL .....s0s ee geen ae vient basd no calbasdosel 


COOKE). <. ownh on Loa dae dog eons e  SOEMIREE bas erutiorw’t | 
002 .@. seree ee ere aeeypry* a ee ee 7 eee awn we eee een te BBD: 
000 .Sf ever ene ec idawceneceeeneig@hGewlooemeeesenm 
; 000 , 48 ab iehenetdebet hers os 6) CGLUMearae™ asmsQooA | 
000 , 0& ee ee ee ins saunas sat nes afflg 
000 >». 9S ay 8 eeveeservecensd e@eeehe GORGH RO esnrcooh: 
<<) seen cd bane canien ee ne eehiese eee MmmeEE ee teorstal 
0 at @Geevrexenveae cevdvssesesens heen RReereO eS soxet 
00 ~eES } anfgnol BEv dia viv bb.s cocks bon seems Sinee ean 
~ 000 .acl ache celp ane ones sneha on cee eee 
OR gt ® Siete. « sails oper nae ¥ manna: <e oie a 
902, 6f ® swine: + ole ve wecviecke ycete (eine eae esiistes 
002, ¢ " ep a we oe Oa ke 2 eae soft 
OO st Bet lca e + oupene wieyeield’y © 4 oaratana nce | ayeee tno 
00E .S | * He oes ont ir ae 
OOS a | v- sso up ipeenes «ey QSGRGuae itoaetteoemi 
009 4¢ PN OP Pr gntivsth qtdgt 
000 .é ee Sep ee nevene  ttpooes uirlwstd sorrel 
4 SORES 005.5 EE Pa he aniikd pati a gaiwetb eb 
002.5123 Qos SLES | | | ee 


«O04 aed oor ft  Waedabal RE t9q 65 oatbnsconel 


ot oventerd oft mk teototal aid boa booW ,fOeCL yf sauna 
ott to argéstts oft Yo motyebluptit adT . .deso 00d < sonns@ 
esatbasdorom bar swwtiowt .L0ef qlb dezell petolqnos per utit 

of gtitmrons eldeviooet siivocer bas effid .000,8f£9 bestieot si 

to seameqre eaT .ofdstoolfooaw bas bsd of of amok orem 005.59 a 

| sewollot es orew een haa 7 


O83 $ ea trol 
OGd .£ oes ee geroiss limes . fea poet. Bf 1 
. 60¢e (we sans 9 ERG RES muon ae 









sodmooed ‘gtmyooor esol bas ¢ttorq bane fogtie 
» foer «lL3 dowel no ee 


bol 


PROBLEM NO. 24. 19 
(N.Y. O.P.A. Examination) 


A, B and C were partners carrying on business with a capital, 
December 31, 1900, of $60,000, of which A's share was “30,000, Bts 
“80,000 and Cts $10,000. Each partner was entitled to receive 
intereston his capital at the rate of 5% a year, and to share pro- 
fits or losses in the following proportions: A seven-twelfths 


, 


(7/18), B one-fourth (1/4), C one-sixth (1/6). 


The partners agree, July 1, 1901, to dissolve and wind up 
business, All the partnership assets having been realized, and all 
liabilities and claims paid, excepting legal expenses amounting to 
(500, there remained a balance of $38,750 deposited in bank, The 
partners arranged for a final settlement to take place December 31, 
1901. The cash in bank bears interest at 2-1/2% from October 30, 
1901. Adjust the partners! capital accounts and prepare a state- 
ment for settlement on the day specified. 


Ref. 12-2 
164 


TE TS, ye a, eT 
















“VBS .On Iearat 
(nottsataaxd cAvted 9 


Dee bale & att be identond 0 Bin*to. 1000 rtieg § 
24H .000,080 rere e’A do. 000, 08: - 20° 
eviooer ot beltiine sew tentisq | «O00, 
ox, eteda of bas ,ts0y & &2 to etsx od te. fest 
adt tlowt-nevea. “A rasoktsroqezg girivo 62 oat 
- (&\£) dtxte~eno ae ) dt 


qe Briw here ee ot ,f00L .f yfut come | ater 
fe bas ,bestiser ameed gnived pi bn qidarontreg oft If 
ov guitavoms esaneqxs pes naifqsoxs ,bisq au elo bas” 
edt .aned ot botieoyed O8T,S&y to sonsfed s beatsmsy ood re | 
LE tedusoed eoslg $ o¢ toomefttes LIsatt s tot METIS 
206 stedeotoO mott se(-2 ts tesretal ersed uaned at oe } 
“otsta s ersqetq bas atmyooos Lediqso tarendtag edd ¢ ws rete Me 
beltioeqs ysb odd mo tnemelites zo?" | 


gear ctem 
$3L <n 


Bh cy 


; p We ; AI i i 
: i ae | i 
7 sD thdee en ok Aas 


PROBLEM NO. 25. 30 
(N.Y. C.P.A. Examination) 


Robert Adams and William Stevens are equal partners. On 
the night of July 3, their stock and fixtures were destroyed by 
fire. A trial balance which Adams had at his home showed the 
“ere MAR condition of the ledger at the close of business 
June 30: 


Robt Geis ss. 2s Fer eee reed, foes. POPP eee ie $¢ 600 §$ 7,450 
Wis @SGSVENS, sree een vere Frm, Pee. Pris le areas 600 7,450 
Been FPP PES. es Crosperi et eF9s, hae. Fees 3,309 
PUMTULES: way «a ewan eee OPE 1,500 
MGSGs PUP CHASOH, wc stewie «we WO es cc's se 0 ge A 33,600 
MOGeS pales, cs eKs ewes ae 4 ss bes be ; 24 , 800 
PeLes LeCes Venlo, eevee ell odo ce oe HO ee 1,000 
HOLES TAven veh otae se Pee T s o oe lcs eat. of hig 8,000 
EUQCLTOSE pare Ce ete ee os Seer ee: PPPS C4 SFs <a Meal 120 50 
RRC Pee wee re Reems ee So oo fee 780 
CUBTORGLT Gs vy sence t sek oe aes ce “oe yt a ee ee: eed 4,500 
Bey OG eel ee AAR i FORTS Es oa 5 sree 0,209 


$45,009 $45,009 
The pvroperty is fully covered by insurance. The insurance 

company, for the purpose of estimating the value of the merchandise 

destroyed, has agreed to allow 35% as the average gross gain on 

the sales and to pay 66-2/3% on the value of fixtures as shown 

by the ledger. 


On the basis of this agreement, state the result of the 
business and the capital of each partner. 


Ref. 12-4 
164 


tee .28 .O% MEEOR 
| (noitsntmert 446% G¥sH) * 
m0 .stentdteq Igupe srs enoved® mslilin Bae Gmebs srodof 
yt Hoyotsash orev serutxit bas Apose szledt ,GyluL to tigia ¢ 
emf bovote omen etd te bed amabA doidw compEsd L[etxt A - .oxt 
econlasd to eeolo odd ts zegbel edt to moksibaoo ai tava 
ob | ieee ook 9 i eas 100 Enyt 


OBE, 3S OORT... ... seeeeweuee sb cen cu ws ss oem (2 /iate 





02h, 008 » ee ee a ee a ee a tvegae eee ees # gBOVOTA o it : 
C06 .€ i oss b+ oi Mb lag 105 Wik Ebre 0 Weg 6p ee eo OO ; 
008, 2 «.. CTA CoO OUW EW ER eee wether eee ees eee gBOTNIKIT 
003, $6 PSS eee eRe eee e eee ewe eee LEOSBLOTIN, »6GDi 
008 . $6 See eee ee ee ee ee ee ee eee ere ee eto et ~96DM 
Cee 8 he vi ewe weebe ewe coveses pSLGBVLBOSL GSTOT 
Q00,6 CO OP ee COE HEC ee hero w ee enae ee OLOLYER sotoul 
Oe OSL **ee- WEETETELG |) URPERTTEL ELE ee 
O8Y 0 8 Ge ieee a Peiiiia' nas Wee @i ne onsee se gOOMOGRE 
h 008.8 Creer raereenessebebBwewss sere svoves eg Seenoraue 
i RR, Ge a Cg scp el osbe ea diewete onvawe ee gOeOS 2BOae 
GOO,Edo 000.230 


sonstyent ocT .comsiyeant yd betevoo ylfet et yitegore edT 
celbasdorem sit lo oulsv edt gaitanttes ‘to seoqryg off tot yyaeqnoo 
M0 misg aeorg opsteve oft es O25 wolls of beerga aed ,beyortesd 
mwode es eorutxtt to exlsvy oft so &E\S-383 yeq o¢ Base eofra on? 
: stepbel ett yd 

est to tivacr odd eteta ,inonsetas atdt to ekesd oct a0 
»tomtieg doses to L[etiqes edt bee seorteud 


b-GI tet 
ys | 





PROBLEM NO. 26. al 
(N.Y. C.P.A. Examination) 

A and B of Colorado engaged as equal partners in a stock- 
raising enterprise with a capital of $10,000, each contributing 
one-nailf. 

A received a salary of $200 per month. 

At the end of three years they decided to terminate the busi- 
ness, and B, who handled all the moneys of the copartnership and 
kept the books, reported the following receipts and payments: 


RECEIPTS 


AYS inVeetmeniy Giis Per eer es oa. . cs ae. STOPS Pald. oc > 8 000 
Bee Wives tmenhy« Wels Ghd Ss Ade Pes ine ss ons Oe UR De eee e. OLN: 5,000 
Balés of Cattlegese. tars 4 eo oLawole leper es «i. 35.08 SEO 869 
LOanaod. shake S¥sies Hi. PORES. oiocceotak. We Borer. 2c. | 15,000 
PAYMENTS 
PUrciadee nota thle pu. gard. di ews dwdive. i ecdende wes Wel aE a: ° $57,000 
pet a ee ey ee ee. eer eee err 14,000 
ere Re aay 6 adel a ee died e's ie hoe 0 + oe 06 ee es 4 4,200 
SRECLOU Ga asa ae ae « 2 Pare (rrr Porn irer  s2be chr pea 1,900 
BC ONEOS Ss vost donc cscs evegewns +e AOOda. » « ORR ees ee 9,000 
A's withdrawals,...... Leer er vee etliueds + ta Gee... es 2,200 
BS WiGRGCYAWELS, «sce awe ewes me aiehs Teorey re 1,800 


A round-up and branding of the herd showed the following in- 
ventory: 30 heifers @ $20, 38 steers @ $30, 75 cows @ $20, 10 
bulls @ $60, 75 yearlings @ $12, 100 calves @ $8. 


There remained with the bankers a balance of $16,150, and 
other assets were as follows; horses $800, tools etc. $100, 
supplies $150, accounts receivable $750. 


The firm owed the following pills: branding irons $40, salt 
$100, lean at bank $1,000, unpaid wages $260. , 


You are required to prepare such statements as are necessary 
to show (a) the financial condition of the copartnership at its 
termination, (b) the results of the three years' operations, (c) 
the interest of each partner. 


Fae eee 


i§ 











‘Ty en 
aha eis 


is - O& OW fade 
fiotdanteae® en 
if ee 


“too?e 6 at atendxsg i ams obsxolod | 
anitudiztmos ome ,000,0L¢ to  detlane 8 Atte on ve 


.dtaom 199 0082 to ay 
~toud odd otsmimres of bobtoeb yeds exssy estds to 
Dae qideteatraqes eit to eyemom oft ffs bolbned Rony 
sstmomyedq bas stqisoer entwollot miead betrogst 4a 
















ee sy 
000.2 Se! Ce eeeoweeneos ae @ ees wie -svebelaleue oa le» ceseeeeeraes edomgoovat 4 7 nie 
OOO re ef? ee eae eee ee ene ee eevee eee Peet eer tt aoe een ea & tnomtesval cy 7 : 
4 * ; 5 
eat . Os: PRR ee eee es obs tereeteaeereesesoerenrerse weg OLItSO to ¢ A 
000, 2£ Vw eeeer env s een 'o & wig o ee 2 whe 
ri ie 
STUIMYAT ) 
000, T2% TTR were rrseeeereenensarosaresssagesegOled eo to seescio 
OO>G ae iii ee ee ee ee ee en ae 2 
4 . 
008. ee en ee ee a a COs ewes op ane Gale es owes 6 4in 4G RERLRE e's 
000 me ae e*e@ee ev eva oe eet ene TANT e ee rere sens eeeereressaseneses gSEOTIST 
000, e Pete revere se seve oe ees ester ees ee ee eee e este ene e we asamedx 
008. even deonwn ade **@eeew @ + & Lee eee ee ee ee ee ee eleva: tiw Kn ¢ 
: » De s 
008 .£ Soe eeetvae Fee ee H Oe eee ee reser ereseegese  SLONST ONS Lh ad 





~it age ot edit bewode bred odt a, mibasad bas q. 7 
® awoo é¥ ,0&¢ @ arcsta BE 4083 9 daiies Os, Oe, iysocme i iy 
| -83 @ eeviso OOL .SLe ® egailzesy &F ,08¢ | 


bes ,0&f,3f¢ to somsled 8 stedaed odt dtiw benismes steaT Si 
,OOLS .oto afloos “008s serod gawollot es stew rt igers anes a 


088% eldsvieos: etmrooos ,02a selicane 
tise ,03¢ emort galbaetd sellid wolfot oat bewo ar 
j -O382 segaw bisqau ,000,f$ xaed a 


YTSeL999N Sts ‘es atnemetste dove eisqerg of boxlupea stare 


agi ts qidarentisqgos edt to moisibnoo fetonen eee ee words of 
(0) ,emottersco Tarsoy serdt ot to atfues: as cs aunke : ode 
| ft 


‘ becsedes 5hy flores te 


a 





$oL 





PROBLEM NO. 87. 22 
(N.Y. C.P.A. Examination) 


A, B, C and D enter into partnership with a capital of 
$100,000. A invests $40,000, B $30,000 ¢ $20,000 and D $10,000. 
They are to share profits or losses in the following proportions: 
A 35 per cent., B 28 per cent., C 28 per cent. and D 15 per cent. 
ene are also to receive stipulated salaries chargeable to the 

usiness. 


At the end of six months there is a loss of $8,000 and mean- 
time the partners have drawn against prospective profits as 
follows: A $400, B $600, © $600 and B $400. 


They dissolve partnership and agree to distribute proceeds 
of firm assets monthly as realized. C and D enter other business 
and A and B remain to wind up the firm's affairs, it being stip- 
ulated that from all moneys collected and paid over to C and D 
commission of 5 per cent. is to be deducted and divided equally 
betwi A and B for their services in the winding up. 


The realization and liquidation lasts four months and the 
transactions are as follows: 











expenses 
Assets Liabilities and losses on 
Realized Liquidated realization 
exclusive of 
commissions 
BOL MONTH: Fives ee pH EAA LS $30,190 $$ 7,900 $ 400 
Mii MTGE eee Ta GS Tha es 50,300 6,100 750 
OLA Months sai sseds xe shh ease t 20,010 3,800 340 
S2th° months .4+ssea% s 7) Cv eee 9,500 2B» 200 110 
$110,000 $20,000 $1,600 


Prepare partners! accounts showing the amount payable month- 
ly to each one. 


164 








Sf “SS LOM vsaeoat a, | 
(mottentinsx® . A, q. 2 e. ce 
™ 


to fsthago & atiw otderendese¢ ofnt mon t bare 9 m| 
000,088 @ bap 000,083 5 000,089 4 .000,0b8 egsevnt A '.000,00L8 
secots TOTOTT twollo? oft mt seesol ro atftorg yee ov 9% oat =a 
-tmoo ueq Gf @ bas .taso r9q 880 ,.déme9 tog BS @ yedned woq co A 
oft o¢ eldseatedo asixrsfsa botsingtia oh eit Pe cots ete yoeT 
‘ee ela  anaalenatel 


«neem ban 000,88 to ssol s est rns addmron “be to re ‘ean th. 
88 atk toxg evivooquorg tenitsas mveib eved atea ont vais 
.00D3 © bas 0002 0 ,0083 @ CODD A demoiton 






abesoorg ebadine eth ot seTgs base qidetentrsq evfoaslt wT 
eeentand tedto totae @ bas 9 ,besifser es yiddnom adseae wad to ie a 
‘eg¢ite gifted tf ,stistis efmrtt sid ay baiw od altemet & Sans reget co a 
‘Cd bas 0 o¢ reve bleg bas betoelfos ayeaom Ifs mort tadt betele i 
yifeupe igen bas betouheb ed of Bf «tn9o r9q 2 to aoteaimmoo iar 
xlbatw edd mt asolvtea siedd sot d@ base A nSewsed >. 

“I 


oft baie ad¢mom rot atesfl nottabinpti bas motvasticot ofT A, 

:awollot aa srs anoltorenstt 
“GSSRSAKS nem ee ay 4 
no eseeolt baa soltiilidsil atoaes 


jotissilses betebiupid bestissh 
to svisuloxse 








antotea tomo | = | ee ae 
00s @ - 000,848 oeLoe & oc tereeaeenens baad ter 
oef OOL,8 QOE 608 <7) i e'noe's «dae + ee 0 ee 
OLE 068 ,& OL0,.O8 isd. sdbhiierne bré ” 
ul re 00S 48 00¢g,¢ wae es eres ee ane i, 





eiinon efdsysq Sodom ont ee atmyooos *etentted sxsgerT 
- 9110 Frage ot xt 


bat 





PROBLEM NO. 38. 23 
(N.¥. O.P.A. Examination) 


A, B, C, and D, partners sharing profits equally, decided 
to dissolve partnership. On June 30, 1908, an arrangement sias 
made by which D was immediately paid $18,000 in cash for his 
interest, and the remaining partners liquidated the business. The 
detts were paid in full, the machinery and fixtures were sold for 
921,800, the merchandise brought $17,500, and all accounts and 
notes were collected in full excepting a special allowance of $500 
made to one of the customers. An amount of $2,000 was disbursed 
ror expenses in liquidating the business. 


Prepare profit and loss statement, and a statement of as-- 
sets and liabilities as of June 30, 1908, using the ‘value of the 
assets as determined by the liquidated values; also prepare 
partners! accounts showing the cash to be distributed to them. 


The trial balance of the firm on June 30, 1908, showed the 
following accounts: 


We CAA ca BOCCUNE, «6 6 oe cs evclca dees ss obs REA Os Pe $ 25,000 

Sf GSU eA+SUCOUN tb erseuned: ieee reay sis. cca we tee ‘ 25,000 

C's capital account, .«.....0% <TYTVGEELOETET i UU EE . 25,000 

DAS-Gapital Accounts nc. enedwasie nad ttwes od iweb < mane 35,000 

DEM e. Pe, DAK. is wena’ s ada e S Sis SOD. o> takes HEL Oe400 

POLES ENSUGIVED Sree eadt ac dis mathe reds Kee ay: eee ae 14,000 

Sey ee OCS. VALE ale 4.26 050 Fo ees ok + © © oe wo biel eel 36 ,000 

Merchandise inventory of Jans 1, 1908,.......«: 20,000 

MAG 02GE77+0NG a. LREUPSE a ae ta eden bes Twa we oe MER 25,000 

Merchandise purchases, Jan. 1 to June 30, 1908, 70,000 

ee Ne en er ee ee oe eee «3 10,000 

et Oe COS OOTE OS 6 odo oan whe em) ene te + wad Ge Gg 88 8, 000 

BOnt Ga obas ches tad «bois edly i angi aaah‘ re ar ee re 1,800 

DS ars cabias-dapids, 5 Aiea + dake « hee i natn: ben enes 1,000 

AST ee are eee a ¢ ebm Sete 3,000 

Be PEL SCRAL WACCOUNG ocd os + a FRE He RULER ss SOM 3,000 

oe DEP EONG. UCONN, <6 shes bee e be ae eh se bas en awk 20,000 

O'S YOTSonal.accountp« ces ews Hi ans 4 ere ey Te a Te . 3,000 

BALES, SAM od oCOr) UNE OOD ys wie oom cart ees is we hee's . os 75 ,000 

ee CE VE OA ss oe wikis acs © a's 8 «le « 0.6.6 we » 6% wlata lela wible® 20,000 

ROCOURLE ADEYAD1G 5 « anew ts ones Pr emer ene ones bam nee 19, 300 

AGGTUGG INLErGat On NOtESs ace aver nese es ne tmeee « 500 

BMOCTUCO stheOG. oo) ove + nemrehes nts thes tid oe tee o mia OOO 
PGBS Ba gssiw acdiatash » a a Hae a $215,700. £215,700 


88 | 8S .O uIeon 
 (noltsntwex’ 64.5.0 elf) 


bobtoseb eine asttorg gxiveds earontrsqg .@ bme «Do «ft A | 

Sei dromsgcter Te me ,80ef ,08 enul m0 .qidetensis eviosets og ~ 
atd 10t deso at 000.8f0 bisq yfesvatbommi saw C dotdw yd obem | | 
edT ,evcentsod edt hotehtupit arendisq gatnismer edt bas ,taorveiat | 
Tot bloa evew eetudxit bas vromidosm odd ,ifivt at blag stew ot: ‘ob <?. 
bre etayooos [Is brs 008, TLG ddguotd oatbasdotem edd ,008,000 = 
0023 to somswolis {stoece s anttqooxs {Ist mt betoelfoo ezer aston |. 1 
beerdeib esr 000.8% to tavoms aA .eremoteyo edd to emo o¢ thom | 
-saotianud eft gnitvebiupil£ at SREAREZS.. tot ie 


-~@8 to toremetste 2 bas tnemedate aaol Soe titord etaqert 
sat to eulev edd yatar ,80CL ,0& gmt to es seltiiidet£ bas sites | 
etsegetq Osis j;asulev bessbhinpil edt yd bentmreteb es efeass | : 
edd o¢ botudixntelbh ed of daso edd panivode sitnvoocs *ereatisg 


edt howons ,800L .O& onwt mo mrt? eff to gonmsisd Lsirt on? ‘ 
:atauoooe gaiwollot 









000,26 % ea Ges WOPrerorerrrey ere yy oo ee! Let iqso a'a ; 

000 ,.2s ee swine alae abe Le wevesdese gtamooos Istiqso ad 

000,é5 Hee e reer scnprsnercrvnsereuseerrey sep gunmooos Istigso 8?) : 

O00 SR sees ener eees ewe cus bi seveeen soeeese,cmmooos Istiqes s'd 

O08 .8f¢ i a a 2 a dd cesses egegh®Se vr 
00 O20: ead , beads alles wgiet veseeesegoldavioos: aeton b 
OO0.00 econ ob dra ipa ih algal: Oth ia ean tne aan -+, oldsvisoer etmroood by 
000,08 ers anetegers sf .asl to yrotmevat sefionetctoll 
000,285 jn wehe Mekbeawhonh ove og 8Otssxit bie yronidos i 
000,07  (80@f .Of onut of I .nst ,aeeadoteq saibuedotol . 
000 ,OL eeeteevevreouereaeeeemeeae nenedesememmedeass (ERGHeeane $ 
002,.S big Meo ed seceveeevesace ne oe @GOCROGEO SORT ET i 
008.2 ees + ee wo see ee ee eee ener ee eee eeeee voveeeegOtRon 
000 ,£ PT Tee eee ee ee eee 
000,58 ctetwaune ve eee & © beim & eden eceenesoowss « 6eneeeenenE a: 
000.8 ee ee ceseecessseveccese SmO00R [anoeteq #°A % 
OOO Oe se Wb We wes se ocoscbserasessegthO0O® LARS teq 67a of 
009,42 ee ae lei naeben india gaat gb-vdon yr fLancereq @*9 ae 

000, a err ryrvevenencceng Oe OEUL Of ft aieL geotse 

000 .O& > hewn ure wewn eet oee eo sneehodees ess «0p n grin eetou 

008 ,.eL (istered ibaa at cece rcv sevens seg SLOSYSE. SIAIOOOA 

002 ciao scecenvcoeecse g@OtOn moO festetal Seyto9oA 

000 .f mm vrata Cove eect srererswsenesep ee ses geokee hewrooA 

OO NGS. OOF» aise . RPS ee » pe bea ae oases geleeen 


$-3§ . tefl. 


PROBLEM NO, 29. at 
(N.Y. O.P.A. Examination) 
C, D and E are partners sharing profits in accordance with 


capital investments. At the end of the fiscal year, after all 
nominal accounts are closed, the books show the following: 


FORRES i ess +a. a eae °§ 20,051 

Oy Wate s a ik ets fib lS Sa stl ir ah soe cn ... 60,422 

Inventory of merchandise,.......6.. +600 at Eee 

Bet hA; Ml Gel vabDEhds lateness sels Sr daueevds tice ee ah abel 

BOOM Be CcOuntauTeCet VALS plnacce sce ws s.ece y+ tite tOe 

BS Bt! TiS. .«isis intestinal el Oe #.. td ‘ 8,400 

D n ya Se PRES hobs os odo eee 6, 000 

E n BP ce ee ee te 4,800 

Bille payableycenses «6 \ Oe ae mA o. Sear 
C. capital, 00CeGerk 6G sles. Ts dejluls See 100, 000 
D " ie Maa AMS Pe. alae ch tela ‘ 50, 000 
E ORG Ge A GA Ts Les duis ee 50, 000 
Profit & Loss, undivided profits, ........ 24,193 

wee ES 


2209 403 aod , 403 


The partners thereupon incorporate a company with an author- 
ized capital of $250,000. The company so formed purchase the 
partnership assets and goodwill, not including the cash, $350,000, 
payable ¥200,000 in stock and $50,000 in cash, the last-mentioned 
cash being the proceeds of sale of stock to F. 


It is the intention to divide the purchase money stock among 
the vendors in proportion to their former capital and to adjust 
their accounts by the division of the cash shown in trial balance, 
which will then be placed to their credit as loans to the company 
at 6% interest and remain as working capital. The bills payable 
are to be settled by the partners. As the drawings of the — 
partners are not in proportion to their respective shares in the 
profits, the partners are charged with the interest thereon in 
the following amounts, viz: © $231, D ¥165, and E $132. 


Frame the necessary entries to close the partnership books 
and show the amount of cash received by each partner. 


Referring to question, frame the necessary entries to open 
the books of the company and prepare a balance sheet showing 
the condition of the company at the beginning of its operation. 


164 





























»€S OW I ya of r 
(notteninsxd Ale ‘> 


dtiv sonsbiooes ait attiorg yatrede acacia 
ifs wette .aesy Isoett edt to Bae edt tA .atmenda 
sgittvrolfot edt ~ode adood edt ,beeote ete atare 


£20,086 oo ERT ae ie tee 
Sg ,.03 o+eeeeer Per errrr rr rie reer ey aoe 
00c,. f+ ey anes So 90 eet Sr eee 
BEC. 8L ey sVISC 


SOF, Ohy “eeeeeaee ere o++ eldavisosr od crt 


003.8 ee eRe | 
000.3 ” epee eee % a8 





eo © *# OH e vee ese ££ @ She, 

A ‘ 008,23 rr ihaeen a 1 
 £TS 2 % ; Coes eb eeee se UM ee arweddess ob Qed 29 ert! eh 
000 ,OOL CeCe eee eee ee ee eee ee ) oe Mi 
000,08 ee ere ee af Ps 
000 ,0¢€ CROOK H ODMR HR HERES RD OWS oon 

_ sera iil editong bebivibas jaeol 3 jttort 
SOMEEEy «© TONS0ESS 


“tottus ms ativ ynsqmoo e otsioqroon! non q ent 
sit seadouyrg bearot oe yrsaqmoo off 000, to Ted tow best 
0000885 ,deso odt gatbulomt tom ,fitmboog bas adeces qiderendzsq 
“beiotdes comedian f eft .weso mt 000,08¢ bas tooee at 000,008, esidsysq 
«% ot Moore to ofea to abeeoort ont ater Aeso 


“Ooms Aoote yenom seedomvg edt? ebivib of sola pd abet 


” tant he ot foe Latiqso tomrot xrredt of SES gt erobaevy ed? 
,onmsled Lattt at mvode deso edt to mo rebyibs ane “atmyooos atodt 
Yasqmoo edt at ensol as ttbero tlodt o¢ boosla nett Iffv Hy 

sldsysq efltd efT .Istiqeo anidzow es nismer bas seoternt - te 







edt to agaivetb ed? eA .arenttaq edt yd belttes ed 

edt mi aoxrsde svitosqgest thedt o¢ mottroqotg at ton sts @ 
at moetodt teotestnt sit diivw beagrsdo sie erentisq oft ert low 
SELG Tame .Col} dq L683 0 rstv .evavome gaivofto: a 

of as Sy, a, Ay 4 

e¥ood qiderentisq edt esolo of esiztne yrsescoon edt | 
. »tentisg dose yd hevisoet dasa to FAMoOIS | 







meqo ot aoltitne yrseescsn oft omsert wtottasny me 
miwore teede soastsed s stsyetq bas yaaquos edge io 
-Molisreqo agi to aati i sit ts i eh edt to m 


‘ 


dat 


(i lg Seiad 


PROBLEM NO, 30. 25 
(N.Y. O.P.A. Examination) 
A firm desires to transfer its property to a corpcration 


duly organized to carry on the business, The net assets of the 
firm consist of the following: 


Mamaeand Guildings, de ieddud dues ens 4 Qa Eee. Oo $150,000 
MePChwenehad dn hands «cee en awe anv so +s oe enn? a kia 100, 000 
eoecgunts receivable; was +sB80. Hors its Qa ao vars. « . 150,000 
Gocdmibl iand patente, . 52.C0I0.. das. veri) = 100 , 000 
GHG, PELs a6y ONE OT ea ve DOWN Per see see BRB ee wee kas 50,000 

Ttaleew...t ovwe nae Cae ees. eS $550,000 


It is proposed to issue in full payment therefor, bonds, pre- 
ferred stock and common stock aggregating the sum of $500,000, of 
which each partner is to receive his proportionate share accordin 
to his interest in the firm, viz; Jones 60%, Brown, 35%, Smith 15%. 


Prepare opening journal entries for the new company, and a 
Statement of assets and liabilities, and state what amount of each 
Class of securities each of the partners should receive. 

Ref. 10-4 
PROBLEM NO. 31. 


(N.Y. C.P.A. Examination) 


A, B and C constitute a firm engaged in a manufacturing 
business, which they have decided to change into a stock company 
with a capital of $100,000, equally divided into common and pre- 


ferred stock, par value of each share $100. Each partner is to 
take stock to the amount of his net investment in the business, on 
the basis of 75% preferred and 25% common stock and the remaining 
Shares: authorized are to be offered for sale. On the taking over 
of the business the books of the company show assets as follows; 
real estate $35,000, machinery and tools $10,000, merchandise 
$15,000, material and supplies $8,000, cash $5,000, notes re- 
ceivaple $3,000, accounts receivable $9,000. The liabilities are 
notes payable $10,000, accounts payable $5,000, A $25,000, B 
$20,000, C $15,000. 


Formulate the necessary entries to close the books of the 
firm and to open the corporation ledger, 


164 


7 a ait 1. oe ; a nas \ ¥ hol ' =e 
fie eae y ae }: , vr i ' ] 
> ee 4 Py x ms 
| _ , 


4 : 
i) 
a 


08 .OU MIGORT 
: ; ae ae: ? 
 (aottsaimexd eA-49 YU). 
ae << i? ah 


fii 
oP 
























 goltersqros B of ydreqorq ett tetenert of Betbesb mx!i A ' ay 
edt to afoess ten efT ,eeontend ety mo bia: ot bestarg1ro yiub é es 
| | ‘) 


sgniwollot edt to tatenoo axit 
000 ,daLe we ee eae elee deena e Wine laces ake la an Bae Bred 
000 ,OOL eee ae cov ew eto ee aw eeene cous ee pbrsh ae sethmedouc:: 
000, 0aL j cab dbaewlavas bbeve ¢ees (QSGAUQRURR ER EMO O? 
DOU oes veda ewww es F cibabascccccey gednossd Bie ELfrsoco 
000 ,O¢ . « . were.  Treeitere ee 


ly tf ee ee PPP Sel dek tise kaso? 


“91g ,shnod ,rotetedt tmemysa Lfiwt ai eveat of beeoqgoug ef IT. 
to .000,002$ to ma oft amitsgetass Xoota ommoo bas foots betret 
nibrooonm erare ofenotiroqota atd evieoesr oF at rontis; dose dofdv 

Pol ctina g@S yavord .RO8 seaot ysiveymrl£t eds at taevetat eld of 


s& bme gtmeqgmeo won offs rot aotutne ferwrot gatmeqo etaqor 
doss to ¢apomea tany otate bes ,@ettilidall bas eteasas to #mometeye 
evieost blyode axrentreq edt to dose setsirusse to easels 


2-02 » ton 
£8 ,OM MaTROMT | 
(nottamimexd .A.%O .¥. i), 


gaiiviostunes © mt begegas mit s otuditemoo 0 Sae 7 qf 
ynagnoo xoot¢a # otal samado ot bobtoeb evan yords dotdr ,cesniand 
-ot71 baie somnoo otmt bebivib yllewps ,000,00L¢ to Letiqso 2 ati 
ot sf steontiseq dosd .00f3 esisde dose to ovlavy teq ,#oots box2et 
© ,cooataud oft mi ¢aomtsevat tom eid to sawous eit ot xoote cast 
anininmer edt bas xoote mommoo 286 bas bexrrstesy Pat to atesc edt 
tovo uatist sdt m0 .elea tot Sotetto ed of ers besirodtvs eersde 
savolfot ep etoags wore yasamoo ent to siood edt easntemd edd to 
esibnedorem 400001 afoos base yisaidosn “4000 ,289 etetas feo 
“or sotom ,000,a¢ deso ,000,83 eetiqave bas Ieizegem, ,000,cly 
oie eoltifidstl eaT 000.88 eldavtgoet atmyocos .000,6% eldevico 
@ .GOO,.286 A ,000,82 olfdeyaq etawooos ,0CO,0f9 eigeyeq serom 
“4000 .82%'D°4000,083 








sit to aclood edt scold of eotutme yrsecsoem od? efsfurz0ot 
.tagbel motisroqroo edd meqo o¢ bas mit 
| — 7 
hol ee 


PROBLEM NO. 33. 26 
(N.Y. C.P.A. Examination) 


A invests $50,000, B $25,000 and C $10,000, as the capital 
of the firm of A, B&C. The partnership agreement provides that 
they shall share profits and losses equally. At the end of a 
business term the balance-sheet shows as follows: 


ASSETS LIABILITIES 
Rae, One ty. k.the tk 5 500¢ Notes’ payable, Weeeesy .4% & 10,000 
Accounts receivable,. 58,000 Accounts payable,....... 75,000 
Mdse. per inventory.. 56,000 Partners capital: 
Manufacturing *plantpayt@2;000 Ay. eo... ci 7.05a8 $55,000 
Various stocks and By, esos yok Gees > B?,500 
ponders market iprics / w270000 °C, ....:56. 88 Daa §, 600° 987,500 | 

) 


The business is sold out, the assets realizing $140,000 gross. 
The expenses of the sale, including commissions, were $5,000. 
Show the final accounts of the partners. 
Ref. 7-2 

PROBLEM NO. 33. 
ney OePeA. Examination) 

A and B, partners in a mercantile business, share profits 

and losses equally. At the end of five years the partnershop 


terminates by limitation and the balance sheet shows the follow-—- 
ing: 


LIABILITIES ASSETS 
Oreditors, F..¢.¢.4.: ».--$30,000 Plant and machinery,.... $15,400 
Bille payables «. set eens » 10,000, Inventory, centene. ei - Van 36,000 
Capital: Accounts receivable..... 38, 000 
OS ES ee: $30,000 Cash ist Denes asu pi nseas 5,600 
By a Wines mabe 0a 615,000 45,000 
&85 , 000 285 000 


Subsequently the business as it stands (except cash in bank ) 
is sold for $30,000. Make final adjustments and closing entires, 
and show the amount each partner receives. 


Ref. 4-2 
164 


o& 


Letiqes edé es ,000,0L2 9 bas 000,a8% & 
tadt sebivorg daemecots 
8 to Sae edt TA 


SE OM MUIGORT 
{nottsnimexad .A.9.9 Yo) | 


-vilsupe eseaol bas attterq ersde [fede 


ade 


.000,088 eteovm A 


s qtderestrsa od? .9 3 @ gA YO mit odd to 


Scat 


sewolfot as avons teede-soneled edt mies seoniand 
SRITIIIGALS OTTABA 
600,0L£ @ Sevamacese  SL0S0RG Baotou QOS Be seaes eer erre rer.) 
000,27 eeaweee, Sl08¥8q etmyoook 000, 8¢ . ofdevieoet atmyoood 
_. sfstiqes ereatist 000,5¢ . yrosnaval roq .osdl 
000, 22> o ob o eae O00 , ft weal telg aoiavtos ture a 
002.7S eee eeevese . woe . " Drs excote evolysV 
Qe. Fa (OG8.e « eres Se O.vf eertq teazem ts abnaod 


.eao0rg 000,089 grisifess efeseas oct 
000,88 ere ,caoteetmmoo gaibuLort 
,erentixreg of? 


etitorg exede ,ceonkernd 
gqédersmtrsq edt sresy ovit to bus edt Th . 
-woffot edt awode tesde sonefead edd bas aottatiall yd estenimred 


005.253 
600,88 
000,88 
003,¢ 





900,283 


(ined ai dase taqsexe) ebasta dit 98 
,setitme grteolo bas etromfar 


.te Blos et ssemteud odT 
,efse edt Io asameqzs ont 
to sfavocos Isatt edt rode 


g-7 * tor 


«80 .OU NMBIGORY 


(notgsatmsxad .A.9.9 


BTasea 


eee eg tonidosn Sas trsid 


oe aoe ee dee COST LOSAOVEL 


.»s«,9idsvisosr etmyoooa 


ossequtsd ai aed 


per 


eftinsorem © at etentreq .f Dae 4 


‘DOO OEE s «ees ree w ee io getOtibeto 


-¥«i} 


eyllevps ecaaal ‘oas 


sgat 
STITIUIGALs 


000, 0L SER ci 0m Brees 


090 0&3 ee wee gods tegen 
000,c+ O00 «gl tereseneer rad 


000.88, 


aeenterd edt yltnerpsedye ~ - 





the Lemtt exe .000,0%% xo? ploe ef : 
cov lsoet tsagrsq dose tnvoms sit wode bas ~ ve 











a, 


= 


aw 


‘i Ts 
* f 






PROBLEM NO. 34. 27 
(Minnesota C.P.A. Examination) 


The Prosperous Manufacturing Company, a corporation, bide 
organized July 1, 1914, rith an authorized capital stock of $215,- 
000.00, pare value of share - $100.00 each, for the purpose of 
manufacturing novelties. The five incorporators subscribed and 
paid for five shares each, organization expenses were incurred to 
the amount or $5,000-00, and paid for in stock; and the balance of 
the stock was disposed of on the following conditions; 10% upon 
Pe ee and three equal calls for the balance at 30, 60, and 

aays 

On July 31 the Prosperous Manufacturing Company secured an 
option for thirty days on the plant of A. & B. for $10,000.00, 
agreeing to take over the assets exclusive of cash and assuming the 
liabilities of the partnership as at July 31 for the sum of 4% 200 ,- 
000.00, peyabl é $90,000-00 immediately after taking over the busi- 
ness and the balance in 90 days. At the expiration of the option, 
the corporation took the plant as agreed. 

The following is a transcript of A. & B.'s ledger balances as 
as at July $1, 1914. 


BAe eee ee 8 ww i O06 OD 
MetOLee 4g « se tell} 35,000.00 
vachinery, « >» ena we 20,000 .00 
Furniture and Fixtures PAE Haye Nek: 3000.00 
Pe Or rae a eae Ey, ee See 10,000.00 
8s eee ect, eee tO ra ae eee 2,500.00 
Finished Goods i ig ere re eg sea 10,900.00 
Tare Le Proceaa= PeHye Ca, See te 5,000.00 
muppues oss Serle we)” ‘ely Fg) 500 
Accounts Receivable mM cel aee a a5,,000,00 
eae ech 4 eee ee. ee 8,200.00 
Mortgage on Buildings Ps aha 10,000.00 
Reserve for Depreciations- Machinery By D00.00 
Meeerve’ tor “Bad "Dente “eo ye es 1,000.00 
Accounts Payable GIT al ety oe ee 15,000.00 
RVOP ETS. : ila! Me ae ny 77,880.00 
1 OU Por a ar pe Lae ee ey 51,880.00 


DDuring the interval A+ 
ation had sold finisned good 
cost. 

The subscriptions to the stock of the sorporation were set on 
call with the exception that on the second call a subscriber for 
twenty-five shares notified the corporation that he was unable to 
complete his agreement, and he was released without further lia- 
bility. The forfeited stock was solid for cash at par. 

From the foregoing, draft: 

(a) Journal entries necessary to close the books of the 

partnership. 

(bo) Journal entries necessary to open the books of the corpor- 
ation and to show all transactions on the Prosperous 
Manufacturing Company's books, 

(c) Balance sheet of the Prosperous Manufacturing Company 
Sept. 1, 1914. 


be ot with the consent of the corpor=- 
s for 55,000.00, which was 25% above 


164 


mise. ba 





3 | Ube .O% WEIGORT 
(nottsaimexd .A+T.9 stoesnal) 


sav ,maokterogroo 4 evreqmod gritdostumsm ayoxeqsost ent - 
-,ars> to Aoote fatiqss bostrodtyus as div ePlOr ,f vist bee aes 
to seoaxug ens rot ,dose 00,00£3 ~ ersia to eutsv exeq 400. 
bias heditoadve erotetoqrooml ovit eft .,ceitievox on itstos TUI5m 
ot beravort exevy esamoq%e aortssine3 
to eonsied eft bre ;aoote at rot bisg bas .00+-000,8, To sayous end 
mogy SOL yemotsiomoo uniwoflot sdf mo to bosomekb ssw tocde 99 


bas ,08 ,0& ts sometsd sd? rot alf{so Isups seit bos wmotiqiroedye 


paneer 0° 

as botsoee yrieaned qnitutos tunel ayoteqgeotd ait L6 vful ot 
-§ 00.000,0L; 105 -2 & LA to ¢mela edt mo eysb yirtas sot noitqe 
exit sitmress bas daso to evtayloxe ateees edt revo sist os gricetgs 
00s to ma’ ons rok £6 yinl te es qidarons seq eft to eeteifidsetl 
-taud edt revo maids? retts yietsibommt 00-000,0€) eldsyeq ~00. O00 
~mottqo oft to moissriqxe eft $A .eysh OC it sonsisd edt baie ason 
.beetgs 88 dasiq edt doot noitearoqgioo edd 

ag eeoneted segbel 3'.8 S$ .A to tqizoancis 5 at aniwolfot ocT 
fer fb ylut vs $6 


ae | 


00.000,.058 3. » jn «(ee 


00. 000 ioe . * . a ” ° ** ’ a egntbf ted 
06.000 .OS ee eee Mae ta Vrenidosh 
00.000 ,.é ; _. ,. pomudxtt Sms exudiocwt 
90.000 OL . * * 4 J a * ry Tgeinet al was 
00,00E .& ae ae We ey A Cs. ee BR 
00.000,0L . ZO ene abood bedatmi® 
00.000 ,c Re oe a ae assoord af Atoll! 
0. OO % , > + * * * * o* se 82 agifacque 
00,000. gee is 8 age eldeyteooh atmsoooaA 
00.608 .8 . s ry * * a * « © A net asv 
00.600 ,OL ge 6 oe ft) apn tLe ae ogegs roi 
00.90¢d,S yipnidosl-anottstostqed tot evresenh 
00.000, f ge gt ell ae, Ae tot evxreaef 
00.000,¢£ os o vehi e{deysd atmyrooos 
00.088 ev * * e * Pee . ‘* hy the) ae : * 

00.088,fc¢ ; i ee ee 


erogroo edt io ¢msemoo edt co iv gel ® oh fevrotat edt gnituCd 
oyode D2S esw doisdw ,00.000,c, sot aboog pbecakmtt bios bad aoits 


mo tea orev moitetoqroo sds to Yoote sdt of enottgixoedye oT 


sol tedirsedyve s {fso broose od? m0 sant moi¢qeoxe sit diiv {Iso . 


ot ofdscsus ast of ted? moltetoqto9 adt bettitom estede evit-yisort 
if tedtwt tyodtin Bbeaselet esw oc par ,caomeetge eld etelqmos 
.tsq ts daso tot bloe eat foote Asttotrot ect > wort 

+ 


dteth ,getogetet efs no 


edit to atood edt esofo of yisesooem soften fsmusot (s) 

,gitarontieg | 

«tog109 eft to axtood odt meqo of yrsacsoen estxtns Isnrv0t (cd) 

asoxeqeord edt mo anottosensut [fs vode ov bas motés. 
200d atymeqmo? gaitutos tuash | 

yaogmod gatxuton'twae avoteqaort oft to teonte gousisd (9) 
.&f6l ak ofQ9Gi >, | 

Pr ee | 


, A ne A Gt 


10 ,dose eorede evit sot bing — 


eteoo 











PROBLEM NO. 35. 28 
(N.Y. C.P.A. Examination) 


A, chi senior pene: of a firm, dies May 9, at the close 


the nPorlowing Stane partnership ledger shows 


; 


CEGM We ds ws cosas OMe SOO. Iders eae! wt! 

Pewee asset oy. SOO. be. Ub sre ne od. tee F pieece 

A2S0G Webtors Jered. 00. to. ers idcepin 93,766 

Trahs ar edstore res. OT. Yrs. oones. ee: § 93,206 
Inventory, FONVUAVE IA 5 AOU. aoe. c caitels 13,005 
Par cnases, £00, PEPEL TEL OT. bes, eseee a 14,160 

BALD s ve. Veewe aes eee. ae oly... Or 19,658 
PSPONSED gy « OF < OP Hs Vee Os Oe. OO. Senn 5,213 

CApPCAl PH soe oa 8 OOS. Oe oa oO NE. ' 20,000 
OGpi Ch2OTEP ee SG. FOR rok s be... Ure.’ 10,900 
VarpeGel se Uyer wy «Per Uer. 0eic. oreo a 5,000 
PESsOns ee oR eum. 02.06.86. oy 00. cS a 2 soL0 
wereqnal s,s Cased. Coe ase, Ourdic. che. tf 750. 


Personal, CPR OORAM i aes ec eaw ana baacedan 450 





9150,17441 $150,174 


| The inventory of mdse. stock May 9 is computed at 15, 200, 
the unexpired insurance at "8149 and accrued expenses at $207. 

ne divis ion of profits between vartners is as follows: A 57% 
3 28%, © 15%. No interest is credited on capital but interest 
is oredited on A personal $115, and charged to B personal $6.25 
and to © personal $3.75. 


Tne RaRAVE cote agreement provides in case of A'ts death for 
the sale of A's interest to B and C on the execution of a bond by 
them in Savar of Ats estate, payable in five yearly instalments, 
and stipulates that the assests are to be taken at book value, ex- 
cepting 1/2% reserve for bad debts, in compliance with which pro- 
vision a reserve of $500 is made. 


& new firm of B, © and D is formed, in which D invests $5,000 
cash for a 1/4 interest in the business. B withdraws 211 in ex- 
cess of 810,000 and C pays in a sum sufficient to bring his capital 
up to $5,000. The future profits are to be shared in the following 
stated proportions, viz: 2 1/3, C 1/4 and D1/4. The new firm 
executes a vurchase mortgage with bond as provided in favor of A's 
estate for $20,000, and pays over balance of his interest in cash. 


Prepare the necessary accounts to give expression to the 
foregoing liquidation of the firm of A, B and C, and a balance 
sheet of the firm of B C and D, as at the beginning of their 
enterprise. 


Ref. 34-6 


ro) 
© 
we 


= Fay TM de : F a 7 ie wh 


es 

































8s ae LOU MEAORT | 
(mottsainexd 21.9.9  o¥eil 

eselo oft te ,@ Yel eoib yuri s to tendiaq x€ 
evota segbel qiidexendisqos edt to eonsisd 98 


oc0.Is Ceres sgpsle fae 6 Oe HGS Hae Sees , 
Sov. SS errr yy Teena ees oe ee 
308 , ce 3 oh Veen baie ae «050 0 ee Eee 
a00,. sf error oe ev ee he ee gi yrounst ae 
O3L . of © die: Sin plea €e + 008 eo oe hee ee ; 


4 


6a0,6L ils RCA) , * 
ELS et ata Rae ner iris" ee ees isthe 

000,06 eee weet ew me rs eeer ee eewwgr gt BULGE ~~. 
000 OL > abe Las —ebees O40 he Gee lst tqed in 
000,¢2 + ainance hed a>» 0 ee eiidoig ee geist tqsd... 4 i 
0) te ee UE ee Se ae édnEKE men cle 0 40's ogc genORine ; ; 

; hey ee eewnereeaen ‘em 6 0b * 40m 6 2 wngie ,ienoeret as A 
Poa oy Och Terry rrr. ee ee ~LsmoeTtsT 


arb Obt2 ST £.08Ly | | h 


.008 .aL% te betuqmoo et © ysl doove .9ehm to yrosaevat oAT 
TOS? ¢s soameqxe bertoos bos CSL2 te sonstweal bextyxeny oct 
<8 A sawolfot es et erentisg meewied et¢itorg to motetvis ecT 
teoretat gud Istiqso mo betibere et teetetat of fel 0 .%ec 2 
a&.80 tsnoareq & of Bbogisdo bas ,allG femoeteq A mo Lettiexrs et 
+c%.83 Lexoexsg 0 of ae 


tOo1 ddseb stA to caso mai ashivorg stnemectas Gideteatieq sit 
¥d Dbaod 6s to moltsosexe odd mo D bons A ot testedat até to olsa ort. 
.einomistent yfueoy ovit of eldsyaq .sisiee efA to tovet mi wed? 
“xo ,Sutsv dood ts mexet od of ors ateaes oft tent estefucite bas 
-o1q doldw dé¢iv eonsifgmos at ,atdeb bed rot eviseer P8\l sritges 
| ,ebem ai 0028 to evrsest s motety 







000,¢c, eteoval d dotdy at ,Semrot at Cd bac 0 48 to mitt wen 
“xe sf Ife ewexbdtivn & ,seontesd oft mi sastotat s\f a 3 
fstiqes eid gnird ot smotottiwe me s mt eysc D bre 000,0f% $ 

gitiwoffot eft at hetrsda od ot ots attitozc otic? edt  s000,E° oF qu 
mtit wen eff .3\L Cd bas a\f£ 0 ,S\f I rstv ,emottreqem botsta 

s'A to covel mt hSebtverq as baod dtinv osenttom seedouue = astvooxe 


pom 3 


-feso at teeretnt atd to sonelsd tevo ays bas 000,08, 10t etstas — 





edt of moteeetcxe evis of e¢nuooee vrecesoen edd otecsrT ar. 
eomsisd 8 bas ,0 bus @ .A to maf? edt to nottebhiupti anfiogerol - 
tied? to gnoinniged edt ts es «i bas 0G to mr£t end to jepin ters 


, 











ay 
at 
na 


ber 


PROBLEM NO. 36. 39 
(Illinois G.P.A. Examination) 


John Jones, William Brown, and Alexander White are partners 
in a business, their respective interests in the profits of the 
business being five-tenths, four-tenths, and one-tenth. The 
partners agree that Mr. Jones* son be taken into the business 
aS art January 1, 1916, on the understanding that White's 
interest in the business be increased to 12%, which increased 
Snares is now considered to be applicable to the four previous 
years, wnile the shares of Mr. Jones and Mr. Brown are to be 
40% end 39% respectively, and Mr. Jones son is to be given 
9% interest in the profits of the business. It is further 
agreed that the value of the goodwill of the business, amounting 
to 50,000.00, be set up on the books. This amount is to be 
divided between Mr. Jones and lir. Brown in proportion to their 
Original interests in the profits. Mr. Jones is to transfer 
the sum of {6,000.00 to his son's credit, which will be in 
addition to the sum to be allowed him out of profits of previous 
years. The profits divided during the four years to December 31, 
1915, were as follows:- 


Peter. Gs 6 4 8 est ses Sees. 030,00 
NE i re | ae Ses: 
es Pe) jeg tro Sea UM aaa ae ae 514 eee bs, 000.00 
1915 . ; Seep h est aE! 2 \ 4.) 5 eer O00 oO 


wt90,030.00 
The balances at credit of the capital accounts at December 
ol, 1915, were? 


John Jones . ° 2 ¢ e ~ e . e ry « e a 340,310.00 


Pisses BOW ff ee el Se a 6 6 cele 185,112.00 
Bieeamaer WOLtG « os wos ew 6 we . 21,809.00 


$ 437,231.00 


Prepare a detailed statement showing the balances at credit 
of the various partners on January 1, 1916, after giving effect 
to the provisions of the new partnership agreement as above 
indicated. Ignore any question we AnEGEeECs 

164 






(nottsatmaxd .A.T.0 abomt£it) 
erent3isg ots soidW xrebosxelA bane mod mekiriy | 


‘edt to etfiorg edt ni ocaerasal oe ithe it x 
ex? .dtasd<ono bas ,cdinet=ot ,adtneteevit guied econtend 
aseniaud odt otnt colst ed moa *aonol .tM ded? serge oteatteg 
atetiant ted? antbasterobay edt mo ,Sf@L gf ytsunst vs 86 
bseseront dotdw .8Sl ot beasstont od esentend edt ai tecietnt 
acotvetg wot edt of efdsoilagqs sd of betoblemes wor st stata 
od of 91s mrord .1lf bas somo .tM to eotsda edt sitar Sag 4 
nevig ed ot at cos taemol .IM bas ,yfevisooqeet ¢ & bas 20S 
tedduwt at +I .aasntend edd to etttorq ofd af Faezsrat &e 
giitmyoms ,aeentavd edt to £fiwboos edt to eulev eft stadt beergs 
ad of at ¢msone cid? .edt00d eft ao qu tes ad .00.000,08) oF 
ghoat o¢ moitroqgory ai aword .til bas semol, .1M meewded Bebividb — 
netanstt of ai carol «x .agttorqg oft at eteor)setat Lsatgizo 
mt ed [liv dotde ,.tibato etmoa etd of 00.000,3; o awe odd 
eyotverq to etitory to tyvo atd bewolls ed of mwa oct of moltihhs 
,£5 vadmees@ of erseey tyot odt gatamubh hebivib etitozm edt eer 
e:evolflot ee exev ,cl 










senot adot ~— 
geaonieud s at © 
















00. 0E0 <i? + e = & € @ ‘« © © © BS Be @ e+ © # Sfer io ns 
90 .060 e gp 4 02 ¢ @ @ «28 48 8 Se ee es Se eS érer 4 
00, O00 gad >. 2@ @ & 6) 8. €o #. & 2° eee « * * rer ; 
00.000 i - * * * * * * & * 7 > * ss e * a * ° arer 


: OC. O56 Malods ww 


tedmece( ts atayooor Letiqso edt to tibeto Fs eoomeisd ect 
fete ,arcr ,Lé 


eo «ee t 8 & & Beno miol 
» - *# arrotd msi cfiy 
+ + + « StiSW teomexsla 
00.L88, 08) 3 | 


tibero ¢s seonefad sit Aare: tremessta Befisteb s staqer? 
toetts gitvig tofts ,afel «fl yrsvast ao aremtisq apotasv sd? to 
evodr ee tnemsetas qidatentiaq wen sdt to enotaivorg oft of 
| etaststat to molttseup yrs stromal .betsolfbat 


~ 


Saf 


PROBLEM NO. 37. ; 50 
(N.Y. C.P.A. Examination) 


A and B have carried on business as equal partners for five 
years at an average yearly profit of about $3,000. At the end of 
that time they invite © to purchase 1/3 of their joint interest for 
cash, he to pay therefor an amount equal to 1/3 of the capital in 
the business December 31, 1896, as shown by the balance sheet of 
that date. This balance sheet, which is given below, is handed to 
you with a request that you will report to C whether or not the 
capital in the business is as stated, and if in your opinion the 
investment is a safe and judicious one for him to make. Give a 
brief report in accordance with this request. 


BALANCE SHEET, DECEMBER 31, 1896 


ASSETS 
Buildings, plant and machinery at values as 
Originally taken “over in 1891,.+6.6.66. . $65,300 
Add: expended since in repairs and renewals 123,600 § 77,900 
C@CCWLil and tEAde MATES sy cscs ssc veesnisdseee es mean 25,000 
Books debts as taken from ledger, .....0.s ess. ee we 43,350 
inventory, raw materials and finished goods at cost, 23,200 


Investments: 
Linton Mill Co., 700 shares at their book value, 


viz, 40 cents on the dollar,......... $28, 000 
Ada: five years interest thereon at 6%. 8,400 36,400 
Partners! accounts: re 
OR A ee ere ar ee ee ere 3 3,400 
Ba eee ee core eo ere eee eofre@eseeereaeese goer ee ves 4,100 7,500 
Cash incharttkipe. bees a. oc@us tate dhe Pete eds its OKs a , 23,150 
4854, 500 
LIABILITIES 
Mortgage, <..1..0s. Hee UE a ae le et Pere Pere ee Y 85,000 
Bills payable, ..csssccaes Cab Vises cpien ee ees oo eee eee 150, 000 
ACCOUNTS PAYADLE, see ceeenneneees dive. tie: mi oie (eeseabebasss 32,500 
Partners! capital, ...se...«.. pan Aas rere, cree Ve Re ee ef 000 
$334,500 


7 nt a 
" 


os | 






0& We RRS ogc earaont 
(nottsntasxd rhe T.9 Py 9 ae 
ie a 
evil rot exeattsq isups es seontsyd mo. beitreo eved & bref 
to Bas ent SA .o, dyods to ¢itorq ylusey sgeteve os te atse 


tot faervotat tatol at: tiodt to €\f£ eesdousq of 9. stivet yeds emtt tod 
mi [e¢taso edt to é\f of Laups sayoms as roteteds vag o¢ of .deso 


to tesde sonsiad odd yd ovode es ,dC8Lf ,f6 redmsosd seexteud eft 


ot bobasd at ,woled nevig et doftdw ,Jeede ‘sonelad etd? .etsb ted 
oft tom to tedtede 0 ot t10oget ftliw voy tat teeupex 8 diiw soy 


edi aotaiqe wyvoy al ti bue ,betete es ef seentend eft at Letiqno 
8 avif ~— ot mid xot ono asolofbert bas etse s ef tasaseovat - 


-daeupst ‘eidd diiwv somebrooos. af dxoget sini 


gest ,L8 ATAMIOR .PTINe Totadag “Por 


eTaacs 
, os esu lay ts yrecisiogn base tasiq voanibl tue 
| 005,23) «...ee0+-,fO8L mk tovo meds? ylisateiso 
O08, TF ¢ O03,S£ alevenet bas erisqer at conte bebmegxe :bbA 
co) hl Lt ne vet pesusecneeccsecescsg@atam @bSzt Sue [Itwbood 
Og .8h Sine sushi shames > caeenee mort qedet as agdeh axood 
008 7&8 .te00 ts aboog Secdaltatt bas elst¢sisa wet ,yrotreval 


rednentaeral 
wise dood wledt te eotade OOF .09 ILfM motaid 
000 .889 ceases, tellob edt fo etaso 08 ,siv 


008,56 008.8 “9 ts moored? teoredak areoy Ovii :DbA 
‘ tegmyooor 'sarentreT 
008 ° pares at STU eRe n eee e nena eae ames seeeeeeeeeegh : 
WE® , as SOT eee ee eee OOH eEHTHH ACHR See HT OOS | 
Ocl.S3. ** Fewer eee ee ee eaeve ee a Raa ir Mateo ak dazd— 
004 , S583 
€ 
SSITIIIGALs y | 
900,dc& a “sree Bs sce 09.0'6 Me «hie w emie ble pills 5°6 aha nl a 
“ey *s eee eoe ees reenter eet ae efflid 
JOC —S 


000, TS ee ee ee ee ee 
008. bEay | 


LL 





S a ee ee a EYST étauvoooad j a 
-ihnae fetontted 


EE «tefl { 















PROBLEM NO. 38. 31 
(N.Y. C.P.A. Examination) 


A, Band C were partners in business for several years. A 
Gied December 31, 1903. The articles of copartnership provided 
that on any change in the firm the soodwill should be taken into 
account and its value divided - one-half to A and one-quarter each 
nen and C. The balance sheet at the date of A's death was as 
Oliore: 


ASSETS 
a ne et Me Ge thy. x «oc. 4k 1,500 
Merchandise on hand,....... end ae +68 8 +6, ee oe 123,000 
Sunary notes and accounts receivable,....... 15,000 28,500 
LIABILITIES 
Sundry accounts payable,...... RP Pe § 8,500 
Afs Net anvectinent, »...s.. ere ye Ge So x ohn? 10,000 
B's " Ce ts eke oe es ss Fe ae ee 5,000 . 
Cts n eee Pe at tee << see 5, 900 228, 500 


In January, 1904, B and C arranged with D to come into the 
firn with $5, 000. the goodwill is, by agreement, to be valued at 
<5,000, The new firm, consiting of B, C and D, takes over the 
business and coodwill in equal shares, subject to an allowance of 
B-1,' 28. on the notes and accounts receivable. I+ pays the estate 
of. 9,000, with the understanding that the balance due A's estate 
shall remain as a ioan at the rate of 5% interest. 


Prepare the balance sheet and the capital accounts of B, © 
and Das they should appear at the beginning of the new business, 
writing off the purchase of goodwill in equal proportions to amount 
of capital invested. 


Ref. 17-3 















ree 


” ee t 
4 Z ; re : % 
ae 






A’ .ersey Lerevee 107 asentend at ereatreg Siero» 
bobiverg qideresdzsqo> to sefottas edt ,cOCL fe 12 
otal metat ed biyode ILiwboog eds azit edt af sgmsae yor. 
ines xatiemp-ero bis A ot tied-emo ~ bebivib ayfsv est bas 
as sew dteed eth to ofeb ont t8 teede gonsisd off 50 


eraeen 


A . ; . : ° Pigte : ¥s 
00d, f Ww wale. e 65 Wie eet eae ciie o «6&9 46 Oo 0 a RE feed ‘ 


000.SE sapien say memunaunes +> ¢eerumerge get basce el | 
-«+ eidsvisost atmyocoe a8 sstom YTOANe ie 4 


** © @ 





ouITmgIgald ae 


006.8 He ee ene ee atayodos yrbawe 4 
600, OL ®eeteaererente pers seaaenseeser sOSaS OVA PSH BOE a o)- * 
oar 8 








: 000, Wreerene | Tee ee te 7 . 
e002 BE 00 eG See Peer ey fe hie ¥ std | 
| | Recat ae ey | 
edt otat emoo ot 0 atin begaesis 0 dns a ,eoer PY Sag geet 

ts borlev od of ,vtomeetgs yo ,el {Lirboor ed? . 000,24. at fe ns 
ed? revo ealst 4d bas 2 .@ to yatttemoo .malt won edt 00 : 

to eonewolls me of toetdve ,~sercie [aupes ni chinten ae agentes 
otstes eat aysqy tI .etdsvisoss eéawoo0s bus eeton edt xo 7o 47 
etetes e'A oub sonsisd adt sade gitbasdetebry eds dtiv ,000,c. . a 


Shovotat Re tovcter edt $2 me6k # a6 Bhnxos S18 


D .& to atmwooos Istiqso edt has seeds sonsied edt ersqest | 
yncontend wer edt to gakaniged ent ts ssoqqgn biuode yedt sé a Snr 
tovome of eaolttxroqgeTa Laupe ai ILiwboog to sasdouud edt BBs pind >: 
io oad | .boteevat Iatiqss to | 
\ 


ah des 


i a ee 


SOL 





, fa Se Pil con 
RM oo 
: ‘“t + 
ar wy agers, J 
t beg ¥ as 
¢ 
i RE tee 
r yi 
ia 
L] 
k 
ae ‘ 
nm) 
? ¢ A ? 
wae, 
a4 
ne ¥ 





ee 
DO 


PROBLEM NO. 39. 
(N.Y. C.P.A. Examination) 


Smith & Jones are partners, drawing equal amounts for services 
ni sharing profits according to capital invested, after allowing 
“0 ON Capital. They require additional capital and arrange to 
admit the manager to the firm, he to acquire a:one quarter interest 
ii the business, According to the balance sheet Smith has $12,000 
and Jones $6,000 invested, and good-will is valued at $6,000. What 
Sum must the manager contribute? How will the rartnership , 
accounts appear after payment into the firm of the new capital? 

How will profits be divided in the future? Show accounts in 
skeleton forn. 


Ref. 16—4 
PROBLEM NO. 40. 
(N.Y. C.P.A. Examination) 


Henry "hite has been engaged at a salary of $40 a month to 
take charge of the branch storé of James Hawkins in Lynbrook. The 
following are the assevs and liabilities of the branch store on the 
day White assumes charge: cash $275, merchandise on hand $3,990, 
notes receivable $180, accounts payable $340, notes payable $210. 


At the end of 15 months “hite offers to purchase one-half 
interest ia the branch store and to pay therefor a sum equal to 50% 
ol Havkins's net capital as shown by the books. From the following 
facts make wp a profit and loss account and a statement showing (a 
Havkins‘s net profit, (b) Hawkins's net capital, (c) amount to be 
paid by White to Hawkins: 


Mdse. bought 33,450, insurance paid $162.50, expenses paid 
5135, rent paid $300, mds. sold $5,905, value of furniture on hand 
790, mdse. inventory ©3.245, salary paid to White ¢500, accounts 
receivable due $475, notes receivable $325, due creditors on open 
account $375, due on notes $390, interest paid $12.50, interest 
received $10, value of unexpired insurance rrémiums 955, with- 
drawals by Hawkins during period 4200. 


5 


164 a 

















Se on 
horns 1 ‘* 7 
/ ' 0/0 ee 
‘ 



















\ j : Pi a i‘ AP 9 
* 86 om Uae | 
(noitasinex® ALTO | . | 
asoiviss zo% atayous fsvoe gaiwerh .etom eu e ot & dtiad , we : : | 
gaivoltis wetipigpedosvat stigqes of Satbroom e in peenee ee 
of snaetts Bae Lad tice femortiibe ertupet YSat «+8 fyeo Ao as oo 
vestotut asfiaup emo 2 otiupose of od warit edt oF SMS | . 
000,e1, est mPime goede sonmalsd edt of gribxo 990A ot $ Bis ef3- 415 ~ 
tad? .000,88 #a Bowlev st ILteeboog bas .bsveovms” ‘gendt bre © 
zidotemite; edt [Liv woH Yetudizsmoo Tegsaee + toy mw 
Clotbygo wen ot to act? sdf otal Tnompss yodte. ¥ 
at etmyocos vol? Texte? edt at bebivib ed 
40d .0% UBSAON | | er a 
(mottomtaex? .As%.0 -¥-1) | ) rye 


ot dtmom 2: 0S2 to ytefee 2 fe bogepme mead asd ettd” yxuasH 
oT .xoondiryd st omtawsH eemet to exote dusetd edt to eqxredo ede? 
edd ao Spore doucid eat to eottiLideil bas sveeas oc? ers gasro{tot Ae 
,0G@,0¢ Bbued ao catbnodorea ,6Toe tose renrcde souvees etid Yee 1 ta 
.OL83 efdeysy setom ,0b¢3 aldsyed atmrooos ,Odl eldevieos? BOFO : 
? farmeno socdowa of exretto otid’ edemoa Bf to Dae edt TA AP 
Po2 of LIevps mye ¢ rotecedt qaq ot bas exote doneta ody wr foetosik 
girvor Lat eit mozt .axeed edt yo svode ea. Iotiqse tea perder Se 
(5) 3a horde fosnetetea £ bas, Przo8 SL: eeol bas. séi0s7. a qn vist Btogt | 
od ef tavoms (co) ,Ladiaeo gea o'eatsral (d) gbkoxy fox erative 
z ine a {BA LRMEC 








k 


ot etid’ yd Dior 








Stsy sosmoqae ,08-S80L) bisq soaeteent 4 ye. tds: 
 basd mo oxgtiamwt to emfev ,208,.a Bloe .ah 
otmiooos ,OOd> etid? of bis yrslss .chS.c ¥ 
aeqe mo erotibeto ob .ést, eldsvieoss aetor ash? 
sesuetat ,0&.af% biay teeretet .0CG2 estoa a9 
~ditiv .40) aaukaéty soneayoat beriqzeay to sulew ,O2; 
«008 boizeq patud eataven 





ql 
CA 


PROBLEM NO. 41. 
(N.Y. C.P.A. Examination) 


S and T began business August 1, 1899, § investing $8,000 
and T $5,000, gains and losses to be shared equally and no interest 
allowed on investments or charged on withdrawals. The firm dis- 
‘Solved May 1, 1900. The books had been kept in a haphazard fashion 
but the partners agreed to the following statement which was sub- 
mitted for settlement: net debit of S $3,100; net credit to T 
$3,500; cash on hand $3,400; 10 shares bank stock (market value 
$1,100); expense debit $5,100; profit and loss debit $3,000, credit 
S500. The bank holds the firm's note for $8,000 on which there 
-is accrued interest $60. | ; 


Prepare a statement showing the settlement of the partnership 
ral ie Ne ead el on Dustin ae dc ba gas ye 


PROBLEM NO. 42. 
EN .Y, GlBeA) Examination) 


The firm of X & Z began business on January 1, 1915, the terms 
of the partnership contract specifying that no interest was to be 
credited on investments or charged on withdrawals and all profits 
or losses were to be shared equally. xX invested $24,000 and Z 
$15,000. 


On November 30, 1917, the partnership was dissolved and, as 
the books had not been properly kept, the following statement was 
Submitted to the partners as a basis for settlement and agreed 
to by them: cash $14,300; net debit of X $6,300; expenses $15,300; 
net credit of Z $10,500; profit and loss debit $9,000; credit 
$1,500; real estate having an estimated market value of $3,300; 
the bank holds firms six months' 6% note for $10,000, due January 
o., 2916, 1918, on which interest is unpaid. 


Z liquidated the assets and liabilities and in due course sold 
the real estate for $4,000 and paid off the note when due. 


Prepare the partners! accounts as of November 30, 1917, and as 
of the close of liquidation, and a balance sheet as of November 
20 act « 






















so 7 
<2) Ot disable | be 
(woissmimext A809,  - 
Tt a ae | Real 4 
aes @ ,S68l qt teuguA ea: af —. 
1} yifeupe boreda od of esaaol na ts} 4 
| f salemexhadd fr Pie aise 20. | 
 adbe As vor al treastada, gatwollot oa ‘od bos hs ; 
T Of #ibers ton ,00L,88 2 - tideb Yom :3nom by 
oufav foxrem) footea taed astedea OL ;00} see “lease 2 : a 
fibers ,COO,c5 sideb asol bas tftora :00L. at dideh. jks. reqre (00. i & 
eradd dotie no 000,88 10% ston a’mxit edt eblod anad ~ 6600Ce 7 
By teetetat & ak 
Gidexroasicy odd head tremelttos ‘odd gatwode tnometeta #8 eee | sk 
| saxtt edt to atistts a 
a ee } 
; 7 a, 
‘oy ae eu Ride bi 
(nottankmext .A,4.9. aon AM RSA 

eure? oft arer (£ yxevast ao soonloud noged 5 ae mat eT ” 
ad of saw teevetal om dads gatyilocege toatiaod Giderentiag eddy ie a 
atitowq Ife bas alewsshdtiw go boateds x0 ataoneeov ot hotel bask ; 
S bas 000,382 sais eis Mi pet Lacem Pe: od OF 4 , 
“ie 


86 _bis peviosath es shateiis10% eit <Trer. 08 oditovat is ae 
G ios astata gntvollo} oft, ,tqot, yixeqorg. Sedt 
Seerge bis tasuelites roz elead 6 Bf aTemiteg 

00 et2 SQVUNSIns O08 ag x tO tids& toa (O08 a “7 des, : a 

ve tibexo 7000, Qt gideb aaol bas St St0z4 008 OLe | tipere son 
2008, 53 to outsy gotten betenitad ms Fac tones eters [eon ~OUC sy 

yBUAST auh ,000,0L% 101 otom 85 Sedéaem xie- od amsd ons 
-bisqmy el teote¢At dofde 4 


Pilon osuisoo 6uh mi bre soltilidstt bas 2 eo0408 betel i ypil a 
seb cedw etom edt tro bieg bre 900 r0% a9 [es 


an bac ter ,0o xedmevell to es etarooos on eg 
medwevorl to as teods conaled « baw waotsabtups o yd al 

















£oL | a J " : a 
4 th | 2! 
me 
Z ¢>» 
: . 
wer kay 


PROBLEM NO. 43. 
(N.Y. C.P.A. Examination) 


Three partners contribute capital as follows: xX $90,000, 
Y $45,000, Z $15,000. They share pEOT ne in the proportion Gps 
50%, Y 30%, Z 20%, X's salary is $5,000, Y's salary is $3,000, 
‘Z's salary is é5° 000. At the end Of their fiscal period Zs dies. 
The books are closed and the net assets ascertained to be $153, 500. 
X and Y liquidate the firm's affairs and distribute the surplus 
assets quarterly as follows: 


POS Wh) cL agee Caiman bedes A aneryini <pacte Antares $43,410.30 
BOO ORiGs CIR EGR Ah ee Sn ele nce miele 74,622.30 
PAPA MUSE GOT ersne viene onc. depen AN eae 71,967. 50 $149, O00 


Prepare a statement of the partners' accounts, showing how 
the distribution of assets should be made, together with the 
apportionment of the loss. Give your authorities. 


Ref. 43-6 
164 





U * 


"hac t ticle ee ; ¥ 


, ,000,088 X fevorfot as Isttaso stud tata 
& to aottroge: 


























[Org od at atttor szade eat, 000 
(000, £2 ak yas pa ety .000 "ae et ¢re. ze ot 
.agib hs eq [soctt tled? to bas oft tA 


, 1008 8 sere oa ot . jeniatreces Hb or ten sd? bas’ Bee: 


he? iS vl ‘ae 
Al Us = 
Tere e eb ere eee nee MOTTON »mooe2 
“ee ae ee 


word Rese <atayooos ‘eromtte eute to tnomestate s 9 
odd Mtiw isdtoqot ,ohem od Bb. ie atseas to and 


bar 
aot? broidue TOY ovin reaol edt to faomnnns 
) ae) ‘a ar o ( 








bor 





35 
PROBLEM NO. 44. 
(.Y. C.P.A. Examination) 


1. Three partners invest capital as follows: A $100,000, B 

#00,000, C 240,000. , On this basis of capital investment which is 
to remain intact, they share profits and losses in the proportion 
or A 4%7-1/2%, B 27-1/2%, © 35%, in addition to specified salaries. 


At the end of the year the partnership terminates with a 
loss of $10,000, which includes the salaries dram by the partners. 
It appears that C had drawn against prospective profits to the 
amount of £5,000, and thereby inpaired his capital investment by 
said amount. They discontinue business and proceed to liquidate 
and distribute tne surplus assets monthly as realized. C engages 
in other business, leaving A and B to attend to the realization ~ 
and liquidation of the firm's affairs. A and B jointly are to 
charge C 5% for collecting and paying to him his share in the 
surplus assets. 


The amounts collected monthly, less liabilities liquidated 
and expenses and losses on realization (exclusive of the 5% 
collection charged to ©, the amount of which is to be equally 
divided between A and Bh, are as follows: 


Paves MONth, «oes OMe fe ee Os Fs 4. Thal eat t * 30,850.50 

ROO WORTH seers ssth hikes Ure cevera cece «OO aea ae 

THEvG MOAt Oia e va be Gn eee Ls eee mRe s Kets 60,890.25 

POs G ri UCEah ys; « the + oP ke Se. Sw SORES + ws 56,7 Abe LO 

ae EO Ga eh ok a's 4's aw ale G8 RH 8 Sw, ee Raat 6,717.68 — 

Last menbhyeraiad . 0284 im waw sie, en; . ee 4,485.72 $181,500.00 


tor emer 


Prepare partners! accounts showing the amounts payable month- 
ly to each without prejudice to the rights or individual interests 
of the others. 


164 
























; : 
aie a.) 7 © May “8 
J vier A ie - , ae 

7 rk Vans WW A 

a "WA a ‘peu’ sD 

¥ j ' ia 
} ; +) : 
; a \@ 


3 ~ 1 7a = Gee” 
Ashik wan is oe, ¥ y v4 aes Ts 4 +3 2 ey ety ain > oa 
i 
ae | | 
ee 
<b) 08 MUMGORT 
a Paik Al 4, 


| (motdeabmexd AsGeO Yall) 
@..000,00£% A :ewollot as fstiqeo ¢eevat ont. 
at gutige tronseons' ts¢igso yo steed otdd oO ¢,OUNarts © a) 
molsroqgozg edt af geseol bas ag tome oten yous  tostat sient ¢ 
eotuelse belticege oF mokttbbs ai ys 9 pRSLL-¥S: Be Ameer 


p dttw sotssiured qiderondieg oat ae {i e 
etentrsq edt aretb settsise edt ashulomt doldz , 000 ,0; ¥ 
edt of asf tot? oyigoaqeotg teatsge mopth bad 0 ¢ ese {a 
yd gaomtecval Letiqeo ald betteqal yarored? bas ,000,6s £0 | i 
etabiupil of boooory base egonieud euni¢nooath yout -towoms Sise 
asgonte 9 -bestisot 6s yidtnos steass eulqine eit otudtateth Bae 
- poitssilees edt co? paedss of & Bae A gatveel saaoniend sotto ab 
ot ore YLtatot &@ das 4 ,azietts etartt edt to noitebtuphi bas 
sig at exade etd mid ot gaiyes Das aniteel loo oe *2 9 ea 
) ) ~.et9e8s8 St. 





pogabiuet£ sotttitdstl geel ,yistaon 

%a edd to evieufoxs) aotvssifves mo gesect bar eee 
yifeupe ed oF et dotdw to tavoms edd ,0 ot begitado me 
i -aroflot 8s exe «(8 bas & 


62, 088,08. eevee oa een 4 ale 
ay, oeb 0s ey NE a Oe | i 
as .008,06 eye nei ee eke ae 
Of.asy,8¢ ees *s#vrevee PTE. ee 
a8.TL7,2 D eadeck feces + ene hearers 
° 


00,008 £35; QU SSh ah eveeer ess 
~Atdom elteyseq etnvoms oat qeiwode simvooos terentssd eraqem? i; i 
atesieimi Lewbivtbat to etdgtt edd of oo thre tyodtéw dose OF YS 
. _ ,etedto ede? To 


‘ ; 
got ; 
: i ’ i { & 4 % 
& 7 > ar 
? ae; 
Dil, et 


=! 


_ > 
- © -y 
a . 





enh ok 
0 eet ee 


36 
PROBLEM NO, 45. 


(From Examination Given by American Institute 
of Accountants) 


hip Bs a C were in partnership, A's capital being 
390, 000. 00, Bts $50,000.00, and Cts $50,000.00. Their agree- 
ment 18 tO share “profite in the follows ng ratio: 
A, 60%; B, 15%; c, 254%. During the year C withdrew $10,000.00. 
Net losses on the business during the year were $15,000.00 and 
it is decided to close out the business. It is uncertain how 
much the assets will ultimately yield altho none of them is known 
to be bad. he partners therefore mutually agree that as the 
assets are liquidated, distribution of cash on hand shail be made 
monthly in such a manner to avoid, so far as feasible, the 
possibility of paying to one partner cash which he might later 
have to repay to another. Collections are made as follows: 
May, $15,000.00; June, $13,000.00; July, $52,000.00. after 
this no more can be collected. Show the partners! accounts, in-~- 
dicating how the cash is distribvtecd in each instalment, the 
essential feature in the distribution being to observe the ESC ee 
ment given above. 


PROBLEM NO, 46. 
(N.Y. O,P.A. Examination) 


A partnership on equal terms between A and B is dissolved 
July 1, 1897, the books on that date showing the following: | 


A’s capital paid in was $516,000, and his drawings were 
7S» 500; B's capital raid in wae AB | 000, and his drawings were 
ay 500. Goods purchased “50,000; gales $40,000; business expenses 
1,800. A loss of $1,600 was made on a $5, 090 consignment of | 
zoods to ,viverpool. In the settlement A agrees to pay B an old | 
debt of $3,500. Prepare requisite accounts, and show final balance 
payable by one Partner to tne other. 


Het, tC 
164 









as 
stutitent arotrswA yd sevid aoltentmex® ao7t) 
. Batted Lsttaeo ath sUiderons row 0 bas 

-eorgs sled? .00.000,00% a") bas O8y BTA 4 


¢ etpde ot « 

-00.000,0L7 woxbridiw O zsey oct gatued .228 .0 ger ey 

— bas 00.000,2L3 e1ev ts0y odd gritub asonland eff no eee3 
wod mistrooay ot #2 .eeentend edt tuo saolo o¢ bobt 


3A .O% MTTaONF 
(wottentnex? .4.9,9  .¥y%) i lane ; 


bevloeeth ef 7 bne A aoerted eatet Lesps mo qtderoad t0¢ aX: | ‘ie 
‘yaiwolflot edt ankwords stsh tad? ao edood edd ,SOBL ol Cit 





eter oysiveth etd bas (000 ,aL2 asv at bleq Ietiqeo etA 
Si9W ayaivarh eld ,000,8° eav at bkley fetiaco e't eth ean 
S9ST9IXe Beeniawd {000,0h) eels 000,082 cuug shoo) .00a.f) 


Gonmsicd Lett wode bas ,etavooos ettetupsr eraqet? .008,56 td 


to tnomagtaaos. 000.89 2 x0 ebas: sew 008,f4 to se0f A. 
blo ss @ ye, OF eestgs A tacmelitee edt al .fooquevad of 







v5 


POR, | ; 


37 
JOINT VENTURES AND. CONSIGNMENTS 
PROBLEM NO. 47. 
(N.Y. O.P.A. Examination) 


A, B and C agree to purchase and sell coffee for their 
joint account. 


They purchase 3,000 bags of coffee for $58,500, and one 
month thereafter sell the same at 16 cents per 1b., (say 130 lbs. 
to the bag). The warehouse charges, labor, cartage, weighing, 
brokerage, etc. amount to $600. 


en eG eee fe ees ks kos ace bs bc 4 eae &20,000.00 
B contributes note at 4 mont the,.. 219,000.00 3 
Discount et 6% Oh gameyvs.......- ? ? 
Sy ae oP $18,900.00 

C contributes | note at 3 months,.. $ 3,500.00 

Discount at 6% on same,....cseees ? ? . ? 





759,982.50 


It was arranged that each snould contribute equally to the 
requisite purchase money, in default of which, interest at 6% per 
annum for the month covering the transaction was to. be caleulated 
between them, to equalize their respective contributions. 


Prepare an account of the venture; also separate accounts of 
A, B and C, showing the share of each in the final net proceeds. 


164 







amtmmo tenon (uA € ey 
Nh Ot wmagoat ie, 

| (ao ttemsmex® 40.49 B a , a 
stot tot esttoo Lies Sees sescorug 7s 80 



















ono 002, 823 zot oert to vane 000,8 TO Tey Y: 
7 edt Ont oe) edt soq otneo Of de couse ort 2,0" tor 
. Sgalta ter Ogal TsO bh Geutsdo eavodeter edt .{ ged. 
Ve +0089" ot dooms <OF8 |. 








a ; 00.000 088 Co at a Eee Pn ' gud pw 
. ae 00.000 jets: Ie r com # #8 atom ee J 01 
a. ; | ¢ treesee see g@MBB M0 Re #8 teurope 
ay 00..00€,8£%:......... ee roger. ee 
: 00,0048,.S 5° i ,edtaom & ts “eton setudiztace 
t t 7. cevees sens gOMse MO *8 te manners 






edt ot ylisups studitt noo SIvone dose torts be3mexts 


esw 3 
19q 28 #6 ¢aotstat ydoldw to tlusteb at eYotom ‘Spader ; Stlebupet 
boteliroleo ed of ssw aottosexst? odd anitovoo 


ee 
-snoltiudiztaoo evivoeqeet rated? extleupe ot 19 Leewted 


lo atavooon edexsges osle jewinev edt to taODeS me m8 orsqzor? | a 
-abssoorg tem Lentt edt al doce to suede edt gakvode .0 bas Cok 


Bef item 
Ral 


> _ 


., 
i 
2 





38 


PROBLEM NO. 48. 
(N.Y.  O.P.A. Examination) 


A of New York, B of Chicago, and C of San Francisco enter 
into an agreement to buy and sell for joint account, each to 
receive 1% on his purchases and 3% on his sales, as commission, 
and to share equally in the net profits, usual interest at 6% 
(360 days to the year) to accrue on all values after due date. 


March 1 A buys goods amounting to $3,989.50 and consigns 
same to B, who renders account sales for $4,656, net proceeds 
cue spril PBs 


March 15 B buys goods amounting to $5,050 and sells same, 
rendering account sales to A and ©, net proceeds $4,365, due 
May 20. 


| April 1, © buys goods amounting to $6,080 and consigns half 
each A and B. A renders account sales for £3,783, net proceeds 
due July 1, to each, Band C.. 8B renders acccunt sales for $3,813, 
net proceeds due June 10, to eaoh; A and C. 


Above purchases include 1% commission, and the net proceeds 
are the gross amount of sales, less the 3% commission, selling 
oharges, etc, 


- Frame the necessary journal entries and prepare the accounts 
of A, B and C, as these accounts ‘vould appear on the ledger of A, 
BtOr ats 
PROBLEM NO. 49. 
(Hy, OPAL Examination } 

A and B buy merchandise to the amount of &4,000, A contri- 
buting 2,500 and B £1,500. They sell to C a 1/3 interest in the 
business. for 3,000... How much of the ¢3,000 will A and B receive, 
respectively, in order to make A, B and 0 equally interested? 


Ref. 6-3 


26L8,8¢ wot aelee tr-scoos srobier @ 40 BRB @ qilose of , 


edit a teorotat a\r 2°90 ot LIfee 


8é 













ue one re 4 BS sOW N oe es 2 
. : ¥ a 
a. A vat a a 


astne goetoner? mee to 0 ogsoldd to ‘to sect 
| ot dose genet piggy Tot dine iiee" aaa x ae Bay 
a Sey aelse a no ® 
ee t enotat feves ,atttoage gen ade coandart 8 


prs oun tes todts soulsv LL8 mo sryrroos o¢ (ase i$ 
eagiemon bas 08.cse,é4 of gate og awd 
abeaserd toa 4820, ry rot sates ; 


asmee alles bas 020.8} ‘oe oiineiie igsodl ayod = 
eub ,880, 2 abecoorg tem .o hind ot eels tru 





Sled simeeobe bra od 0.82 0 entseean theo baie 8) if iy 
ebhseoorty ven ,: Eg¢ Se st Oy le £8 sovo ‘arebaet A” 





o0 bie A gdose ot sOL awh enh abadteee: ter | 


absésoxry Pen ort brie ofaasuumoo RI ebslomt seasidotry evodA 7 
eailies .molasinmos ‘Re ed aael ai to, iiiiead esomy edt ots a 
Pesan A fy (gots saegtedo : a 
einvooos edt ereqery Bas adtatns Lentuot yrasasson & odd emett Bees) 
\ to tegbeft edt no Docabek ey Bison ei anooos ssedt as 4D Bae «At 


seh Rees eb S42 ie to @ ; 

| ee , i Ae) ly tas tot 

fh Ott WHIGONT st SUM ie 0 be : ied 
(mottsatmex? .A,9.5 Yo) 2 eae Ee Pee ay 


-tutmoo A .000,33 to stnvome ond use 9 thacdoxem wad @ Soe A. 
eagle 008 ,£> & bare OOdy | 
,9vieoe: G baer A LIie ye 8) edt to ‘dower: wou 2000.80 20%. as 
ihotasiegmt yllauvpe 9 bas @ ,A oulsm o¢ tebro at fev. f STB9L 


i: (8 . tof 









oh 


39 
PROBLEM NO. 50. 
(N.Y. C.P.A. Examination) 


For the purpose of making a joint speculation, A contri-. 
butes $3,000, B (38,000 and ¢ $1,000, and they agree to share the. 
profit. or loss in proportion te the amounts contributed. October’ 
15, 1900, A deposited the $6,000 with his broker, giving in- 
structions to buy 300 shares New York Central and S500 shares 
Chicago, Burlington & Quincy. 


The order was executed October 16, 1900, New York ete 
at 130-5/8 and Chicago, Burlington & Quincy at 127. 


April 10, 1901, the stocks were sold as follows: ' New york“ 
Central at 151-1/4, Chicago, Burlington & Quincy at io1-1/2. Sef 
received a check from his broker to close the account. 


State how much A owes to B and C for their respective in- 
terests in the deal, and prepare the account as rendered by the 
broker, calculating interest at 6% (365 days to the yeas), 
commission at 1/8% and revenue tax at [2 for each 100 shares. 


Ref. 10-5 
PROBLEM NO. 5l. 
(N.Y. C.P.A. Examination) 


Blackman & CO. of New York agree with Thittaker & CO. to 
ship on joint account a car load of goods on ,consignment to 
Seattle. The invoice price of the goods is $4,000 less 5%. 
Blackman & Oo. pay the hauling, insurance and freight charges 
amounting to $300 and give ta Whittaker & Co., March 1, 1905, a 
sight draft on the consignees for $3,000 as part payment for the 
goods. On May 1, 1905, Blackman & Co. receive an account sales 
from the consignees and their check for $6,000 as the net pro- 
ceeds of the consignment. They then pay Whittaker & CO. the 
balance due them. Interest is calculated at 6%. 


Prepare joint consignment account and the account to be 
rendered by Blackman & CO. to Whittaker & C0. 


Ref. 20-5 
164 





208 .O" MIIGORT a ey 
(noitsaimesa .A.4.9 ‘v.09 








~futaoo A ,molttafvosas éntot s gaidsn to | to" 
- odd | ef eotgs you? ne , 2 9 Bae 000, & Be cesed 
“gedodo0 ,betuditinos siayous eat of pe sy Se 20 72 
werk ts setord sid dtiw 000,84 odt ef 

8 i bas Lergaed AxOY wet eoxade OOS | u 

: | ~ 9 -eyomsag & a 

fastacd A10T well .00CL . OL tedotoO betyoexe aév a oo 
“Saf ts youts® & modgatlwa ,ogsctdd bas 8 I ts | 


- deo¥ wot ' rewollot es blos eze” sioote ont toes OL £8 
A .8\lef@L gs youtyd % motgrifiue sogeotdd ,o\f ts 299. 
' : tavoooe edt evolo ot tedtord aid moxt dooeds s bev = 


«tk oviseeqse: sled ¢ tot 9 Bas & OF gewo A doum wod asst? 
eft yd betebnet as tayooos eit otseqety bos ,feeb edt at ategtot — 
(easy edt of eysb 805) %8 ts pas ol slyolso ,r9xord 
.betade OOL dose sot G&) te xed sumevSt DM 8 





£2 .0M MTIAONT 
(rotftemtmegt .A.T.0 .¥.M) | 


of .00 & cedeasid? dé'tw eorgs xx0¥ wel 20.00 3 mendosla 
of tnemmgiaroo so aboon te bsol aso & dmyools tatot mo 
“Ra gael 000,80 ef Bhoog edt to solaq eotovat oct .oltts: 


Pr tdgtett bas eoneweat ,gatived edt wi. 4 
e ,@0er ,f doyall ,.00 & tevettidT of ovis das ot 
eit tot taemysg fxeq ae 000,8> sot sper tecne eat m0 

asatosl=d .@0ef ,f x 


eelse tmyooos ae evicoet - eM a0 sie fit 
hee 
edt to ebeso 


















4 ; 
cont fen od? as 000,3¢ sot soodo tied? bas seeng 
oft .00 & xexeteia’ yer asd? yedT .#@aenmgteanoe 
28 te betslyolso ef testesal .modt oub a 


ed of tayocse edd bas tnyooos taommgtenco tai sae | 
3 .00 & sexettidy of “BO panied baet 
| 8-08 . ten 


40 


PROBLEM NO. 52. 
(N.Y. C.P.A. Examination) 


On April 30, 1911, St. John & Co. and Carpel Bros. enter 
into a joint venture agreement. They each contribute $4,000 
with which they pay for goods that are shipped on May 1 to John 
Doe of San Francisco. St. John & Co. advance $400 to defray 
freight and incidental expenses. John Doe, the consignee, is 
alloved 10% on the cost of the goods and is to sell them at 
whatever price he can obtain for them. 


On June 1, 1918, on the strength of a report sent by wire, 
Carpel Bros. draw at sight on John Doe for $4,000 to the order of 
Carl Peter Gt New York, On July 1; 319138 us eyohn''& Co. ‘receive 
from the consignee a check for 311,200, all the goods being sold; 
on the same day St. John & Co, settle with Carpel Bros. Interest 
at 6% is allowed on all the transactions affecting the partners 
in the venture. 


Prepare all the ledger accounts brought about by the above, 
on the books of St. John & Co., including a joint venture account. 
(Construct your ledger accounts in such a manner that they will 
explain fully what took place, and make a cross reference 
possible.) 


Part see 
PROBLEM NO. 53. 
(N.Y. C.PA. Examination) 
X and Y purchase an invoice of coffee for $128,000. X con- 
tributes £7,500, and Y, 34,500. They sell Z one-third interest 
in the venture for °6,000. How much of the $6,000 should X and 


Y receive, respectively, in order to make X, Y, and Z equally 
interested? 


Ref. 37-5 
164 


Of ph cee » We 
+82 .OU MEIGORT 
(note satmext net ° .¥.") 






is Pides a | 

tote ont bas .00 & nob #2 <£f@t ,06" bigs a 
000, d¢ sind dose yer \, drenpergs owiney sabof ¢ ofa 
not of £ ff becaids ers ted? se tot yea yors doide dt iv 


yetied of CODG eonsvbs .00 B aot .« @ ,ocatonar? t 


et 4® giagoo eit .90C afoot ,esensoxs Ietaebiont for tdgierd 


ts modt Ifee ot ai base eboog ed? to ta0o ed? mo 


moat rot niside 169 of. eotig revetedw 


,oriw yd tne troqe & to dtanerte edt ao ,&lel Pm ext a0 
to tebro edt oF 000,50 70% 900 adol mo tigte ts weth .eo18 Loqrsd 


evisoor .0O & mfol .¢2 sfer ve pone od ~duoY stn ho vag rad 
to ed s senmmtenoo edd mort” 


ihioa gated ahoog od7r Ife ,008,f1 
veoustal .@eTd fered dtiw sittoo -09. $ ado .t8 yeb omse odd mo 
apr! ot palroo the enoltosansts odd cfs a0 hewollse ei #38 ts 


soTNs NOV ouiy’ at 


evods edt yd twovsh tdgyord atmsoobs nontet ‘eas {fs stsqerT 


. tiweoos Siuinev tniot s gatbhulomt ,..oD & adel .#8 to exeod edd am 


ifiw yed? ted? rennsm s dove mt etmyoccs regbel awoy towttenod 
" g0metete: caoto s salam brs ooelg doot teri awe be rere 
eldtesoq 
SES . test 
-€& .O% MEIAORT. 
(xoltsmimezd 2Aq. ° ade 


“109 X +000, af 20% sgttos to sotovat as eesio: ce a bas x 
taerotat bilidt-eno 3 flee ysdt. s00d%ds YT: bas Oa TS: satbdi 


ste X bivodse 000.89 edd to dotm wok +000,9°% xot erstiev edt mt 


yifeups § bas a .X stem ot tebto mt (Viovisosgest evisoot Y 
| | gr 


| @-¥E . tof 
bat oh aa 








41 
PROBLEM NO. 54. 
(N.Y. O.P.A. Examination) 


Plant & Company and Edwards & Company ship merchandise to 
South America on joint account. Edwards & Company gave Plant 
gc Company 1,200 in cash and their acceptances at six months for 
“3,000, Plant & Company were to rrovide balance of cash required, 
40 manage the venture and to receive a commission of 2% on amount 
of invoice for merchandise. Profits to be divided equally. 


Plant & Company paid Smith & Greer for merchandise $5,000, 
and discounted Ed-ards & Company's acceptances for $3,000, at 3% 
discount. Plant & Company prepaid freight ({420, insurance $60. 
In due time Plant & Company received from South America an account 
sales for merchandise and a draft for the net proceeds, payable ~ 
in London for °3,200, out of which Plant & Company Foes woo O00 
to -Tevires 01205 ToT that amount. 


Later Plant & Company received a draft for (3,100, being 
balance of proceeds of sale of merchandise. The joint account 
with Edwards & Company was closed and a check for the balance due. 
them was paid to Edwards & Company. 


Prepare a statement shoving details of the joint account, 
also a statement of Edwards & Company's account. 


Ref. 39-4 
164 



























PUR a ear EOE ty A eg 
Page ae ee ee ao 
sy y i ; i) f 
Wing v bi ne ac’ - A, 
nee fe, 7 
a * 


i wae 
ae ob ae " 
“(notte 8.9.0 a i: 









es oe f 

9 fo soncled ebtvory oF 

sazoan 29 8 “Yo motasiamoo B evieoet 
teupe bobivib ed. ot atftor 


40005 — ‘gu bbnssioron rot treet 


qb9T: pet. 


#6 ts ,000,823 so¥ coonstqecos a ynsqao i | 
08 sonsmvent ,0G)) Fdglest bieqesg me” 
taucoos ap sotuemA dtvod mort bevisoss 4 ou 


ag abosoorg tem edd tot & 
ee Btag yasqn0d A taal sae 


Bn bed ,,00L, &: sot ttarb ees ne: Fae 1900 | 
dmyo0d0n -¢. abot ent ‘.setbas . pi ; 
eu Latins oa ‘tot tego, ry bat ioe eae 


} 


vtavooos tatot edt to efteteb gakvore ininabicee 8 exes 


.tavoooe atyneqmod & abrewba to Genre: de 8 oBis ; 
Bat) ee a 
‘Lae? ol 78 2 iP M f te 4 
; y | #7 he So hy | } / Fi Pe . > 7 
. | : i aa ow vv « ed Lo) at a oo & 


ve van / wih : Dosins é vf Hy ole 


ch Apia nba ant 


PROBLEM NO. 55. 
(N.Y. C.P.A. Examination) | 


Bowling, Green & Co, of New York, consign goods to A and B 
in Havana Cuba, rendering with each shipment a pro forma invoice 
in which the goods are charged at prices in excess of the cost, 
the cost of freight, insurance, etc, being added. Accounts sales 
are received from time to time, the net proceeds eae remitted 
by drafts. : 


Show how the following transactions would appear in Bowling, 
Green & Co.'s. ledger; 


& Shipment of goods Jan. 1, 1908, and invoice rendered to 
A & B of Havana, for $9,850, as follows: 


eee o's sv ane ea do es $9,000 
PLOVEHG, 0 oe ee ale owls o wlelele bots ol ee ein walle s 700 
eG yer ces Gc! a oi ke aie 8 0's et 150 

IO ae eta yw attcve’'s yk Naa a &9 ,850 


The cost of these goods was $8,700. 


b Account sales received Mar. 15, 19038, for part of the 
consignment, shoved gross proceeds $5,400, less dock 
and other expenses, including commission, eypOs) This 
account was accompanied by a 60 day draft for ¢5,350. 


c Account sales received June 16, 1902, for palance of the 
consignment, showed gross proceeds 75,660, less dock — 
and other expenses, including commission, $175, and 
was accompanied by a 90 day draft for $5,485. 


Ref. 14-6 
154 





edt hy 20t .S00CL «ct. 
toob sesf ,003 24 ebseoozg wee 4 
«tofcetmmoos gaibyfoa 

088,85 tot tisrh ysb 08 s 


ela ~08f¢ 


edt to ooneled tot ,SOer at oon Sovieoex as 
M90b ea@el .033,8a5 shosogng 820 

.folsainmoo 

“G88 (ay t01 Le sbind 


bas ,evTi? 


ot boxebaes | town? bas 
sawolflot es 10288 












111 se Ss het eS gale ir 


i } Hf % " 1 ae , 


SS oN Sa 


.00%,82 ea" aboog ee i$ Yo taco 
tan bovtoges sofas tnt 

Seorode ,jnemry ton 
<80BrEqxe | sons: . 
xd belasqmonos sew A cal 


caf ie ¢ 

_ooorogte tad J i) a 

on “£9: a a 
sh 08 a eey 


» ye Le 
ly ae - - 
ety ; 7 7 7 ny) one 
' as vi i he My r 
? ib, a a ie 
ree ee 
| ae ae & ie anne 7 uw : ~ a 


PROBLEM NO. 56. 
(N.Y. ©O,P.A. Examination) 
Jones & Co. consign to Smith & Co. to be sold for their 
account 5,000 bushels of potatoes. The consignees pay freight 
end cartage (200, and make sales as follows: 


1,000 bu. @ 75¢ a bu. 
1,000 b" @76¢da ®, 


1,000 " @74¢q 1 
1,000 5 @77¢ " 
1,000 " @ 80¢ " 


A charge of 5% commission is made on the sales and the 
check for balance is sent with account sales. 


Show ledger accounts in books of consignor and consignee. 
Ref. 18-6 
PROBLEM NO. 57. 
(N.Y. C.P.A. Examination) 


December 1, 1905, a New York merchant ships goods of the 
value of $5,000 on consignment to a commission merchant at Rio 
de Janeiro, insuring them in the Atlantic Mutual against loss 
or damage in transit and prepaying freight and insurance amounting 
to $350. On arrival the goods are found to be in a partially 
damaged condition and the loss is adjusted at $1,000, the 
certificate for which the consignee transmits. to the consignor 
together with an account sales for $3,000 dated March 1, 1906, 
and a final account sales for £2,000 dated April 1, 1906. A 
draft on New York for $4,300 accompanied this final account, being 
being the balance due after deducting duty paid commission earned. 


Give expression to these transactions on the books of the 
consignor. . 


164 


giritevomn somsiyent bas tigiert paiyeqderg bua tlensz? at 


















bee 


.a8 .ON MEIGOMY 


eee 
(mottemtmsxd .A-9.9 Yo) © 


stodd sot boa od of .0D & dtime oF agivmoo «1 
_ tigtest ¥sq sgengisnoo off -ssotstog to eledord 900, sau 
| ‘ewollot en sefse eatem bas ,00S; egediso 
sud 6 ket © sat 006 Fae 
5% 8 YON 8d OORT Tae 
oe: go BIR © OOO L etree 
oe BYE O © O00, D5 
" hos @ *  COCYE 9 Oee 






ie 


: - . a 
edt bas celfsa odt mo obsm at motsetmuoo ¥¢ to egrado A 
, .oolss tivooos dtiv tnos et oonelsd 16% tooo 


-99natemoo bre somplenog to axood at atmrooce. tepbel wode- 
a  GeBL . tof 


32 .OM MAIaOTT 
‘ (nottemtmexd .AsT.D Kell) ie 3 ) aA 


edt to aboor sqide ¢acdotom xx0¥ rel s ,@0€L .I sedmsoot ~2 

off ¢s ¢nedotem foteatmmoo 2 of teeumgtemoo mo 000,c3 to ovfsv 8 9 
aaol tentens L[eutul oitmalvA edt af mod? roan ai oxtsmet sb 

£ } epsash 10 ins i 

ylisttiey © xt ed ot bmyot ers sbhoog edt Laviaua nO 0888 es ae 

edt ,000,5%3 ts beteustbs at seol odd bas mottibaeo b wis ie 

romlenoo od¢ ot adtaaner? comgtanoo ect dotde tot otsoli eg ee 

.bOGL ,f dows betsh 000,é3 sot selse tayooos as atin nedtegod. 

A .«00CL ,I LiteA betsb 000,82 sot sefsa ¢myooos fentt s hme = i 

tod ,dmroooe Inmtt etdt detasqmooos OOE,42 tot Ax0¥ wow go ttexb 3 

-postso mofeatmmos bie ytub gattowbeb reste eub somefed edt gated 


Sal 


44 
PROBLEM NO. 58. 
(N.Y. C.P.A. Bxamination) 


2ps) tO. Bon’ cone ignment, under date GE April 4; uer= 
to the value of $1,500, paying $15 cartage and $6 in- 


ceives the consignment April 20, paying freight [70 and 
Cartare ole..’ \He segue te disposes of the mechandis e by sales 
as follows: April 30, 400; May 30; $800; June’ 30,° $600, on 
which latter he pays storage Charges $30. He charces commissions 
on sales ye credits net interest at 6% and transmits account 
Sales with remittance of net proceeds to A, who receives them 
gouty 10. 


Prepare shipment account as preparing on A*ts ledger and con- 
Signment account as appearing on B's ledger. 


Ref. 235-5 
PROBLEM NO. 59. 
(MiY. OC. Pye Pxenin yee 


Y under uu Es X paying Tes. 50 cavtaeel baa a2 ine 
Bursrnce Y received 6 goods on August 20, paying freight ¢ 175 
and cartage moO. He sold the merchandise as follows: August 30, 
S1,000; Septeuber 30, “$3 000; October 30, $1,500; on which latter 
he paid storage charges $75. Y charged 5% commission on sales 
and credited net interest at 6%. He forwarded an account sales 
With remittance of net proceeds to X, who received them November 
LO, 

Prepare shipment accounts as appearing on X's ledger and con- 
sienment accounts as appsaring on Y's ledger. 


Ref. 40-6 
164 



















8S; OM AIEOTT a 
hist hes . A (no ttemtaset ALTO oS . ay i ee: 


“#191, ih LETGA - eteh bay “Gant 
=ctd ay: ‘bas. suaiuaaa elo ma a beg 


bre one sdgtor? ; anived 40S thaaa idence and ott esl, 
eoLga, ud eetbass foow oct to seeoqels yitmeupe iy ogerrve 
iro 008g gOd ont 003 402 ysl! pOOD Oe ‘tieele tavoltos 

eno kes kawoo eonzedo oH "08 eegtaio omotote eveq gy eters 
dimooos atimensst bas 3 de teoyetnt tea atibeto: selss 
medy esevisoos of” ,A» ee: pera og 36 consttinen ditw 
/ wm00 bas tepbef c'A no Seattle. as. ee pene rages? | 
uf stegbol atg 40 petssoqis as tayeons. “re 





-— 


| | en @ OF meee 
in Y (solitsatasxt ee q.0) an) 


of OGT,Ec.te i sph es tbnedororn to dro teaos. a: srt ats 

wht art bas ogstuse O¢,%E9 palysq.% Wee re 5 as oo he 

ay te diaiext Areee «08 teugyA 10 abooy edt "pavten a 

¢ & doretrA savolfot es cakbaedoronm edt hLoe OH <9! 
ftaf dokdw no s00d.£8 406. tadoto0 4000.59 (08 cod rane 
aolee go nolcokmaoo &G, .begisdo Y, «839 asaters onexed 
notes tuyooos ae hebtewiot oH sade teotetat ten & 
isevoltl meds bevieoer oat .X of abseoorg toa te 8 


i bre 1 ahes, atX go antieeqqa. ef adruoooe snboehaed pees 
| steghel af ¥. no ciahuadh oes 88 2 soe Seay 


pee y 


A5 
PROBLEM NO. 60. 
(N.Y. C.P.A. Examination) 


The X Company of New York City decide to start Archer and 
Brown, two trusted employees, in business in Buffalo, N.Y. under 
she firm name of Archer and Brown. 


The X Company shipped a consignment of merchandise to the 
new firm on January 1, 1914, On January 1, 1915, Archer and 
Brown mailed a trial balance of their affairs £0 the X Company 
to reconcile their mutual accounts. 


TRIAL BALANCE OF ARCHER & BROYN 
JANUARY 1, 1915 





Account receivable,..... © 37,963 X Company,a«.s. wen 
EXPGNGGh gs tenes ma keoumas 8,840 Sales account, nei nb: 
Remittance account,...... 60,000 DALanGepwe ess «- 91,8%2 
SSR A Re Arata WT OE ae Cone 8 “18,070 Archerperiea-s ss ms 4,000 
Brovilesesnenr én ‘ 4,000 
&124,8738 $124,872 
TAUONTO WS, a wisixigois «xo s 4-5 > 18,780. 


Furnish the required statement. 


Ref. 46-4 
164 








odd ot seibasdorem to ta i 








“gedosA .2lef 4f yrevast 20 
% ods ot outs yee rt ig to 


net t yrat f Re i 
cyaees es gemeqcd 2. 36.8 G ee 


gen ,iavooos asfeg 096,98 cine + sir crs, a 
oevw ee nee ,socelsd a! : ve vot a ie ret ¢ : NG 
iiig'na + 0 0os Re kOROEE Ov0.8f 


weer ec es eee g TOTS . ; a” ee oy 4) 7 f 








cot 


“1088, an % mae 


; 
+ air ; 
iy y ; 
in Se a 
Goes 
og Rie : 
tu 4 ye 
» van ie-y ‘ 
Sheen 
| aS. ry, 4 
, | 
<n 
yf ¢ 
io A eee ¥ { 
, j | 7 | 
un - P 
r 
ay 
\ ee 
e 
Fr 
t 
’ 4 
s% 
‘ it ‘ a 
! @ 
: my. 
j 7 v ® 
i4 


Adam and Craig receive merchandise from Gcodwin, Allen and 
Compsny who furnish a memorandum bili at cost, instructing Adam 
and Craig to add 10 per cent to cost for selling price. Adam 
and Craig receive jointly $8,000 salaries. At the end of the 
fiscal period the following trial balance is furnished; prepare 
a statement of accounts between the parties: 


Ceetin SO VaTINGRs bes beiteee b> +> (ie eee a oh A000. 06 
Pen Bes . ao naebbw en poe eer hs AC ee le 

POGOUNDS: PECEL VAD Leesan. ies se sas > Stee eee OU 

Pems t tance (SOCOun iss vee sen ss a os + sty) eo alee OO 

te OOM Dy aA LIST STG COM DAT. 920 2.sp veces ere 250, 000.00 


SBR) a Ee rn cman 6, 000,00 
TE TT DA enn EE rer rears 5,500.00 


Bt CRON EOL Diy eee eee eee os Taye OD 
Pee er PL ag GPa wise. pede she nim sunte bo ‘ » yep aes Oa 


$266,954.55 $266,954.55 


——— 





PEMetia PSS TOY, MRM occ 6 inv vee oye vchisse wakes $107,500 


Ref . 46-4 





















bas 


mab’ 


mM 
w 


00.000, 


oom c) 
ee. eat or 
| pm | ee 
4.509 338 
9 ater engi 
re oe 





noLth extybo00 we 
apbA. gctdoustonk 
20 lig gnil 
ett to Bae ont 2A 
STHYOTY ghbedetaxw? of 


er eo wwe 


: ‘ ik ' 
60. OoO8 at we . 
OO »O9O quae .? 
60.003. 58 | 45 
* 
00 ; OO 3 a o "* 
BO. 00d ao cist 
ac 7 f ‘* O8t * + 


= Kos Tate) 
ae. 60,8086 
anya rasa 


* 


* 


> Sy t+ Sees 
af . 
*e@evre ee 


oe? eet awr 


* 


(motte mimexd Ae90 


¥ 


tw ee 


xt sathasdor om ovis 3 
oo ta fLid aubarromen & £8 
fee rot kid od tH90 valet 
vasirafee 000 ,8¢ ylt 
sons ted Intat, sairol 
ole tad: edd mort oc et 


el a ae 


«ecw en qbOOREY, f 
dc we 68 ba eee -~¢ 
, +, bidavigost | 
sae ve eRODOS 95) ‘py 
.casqnod dna melta e iy 
Baa: as, » ak oa ele ee 
vheteevecrsewecer eens s (HGS 
eevee ge liotg has yrotne 
eae at -++,e0lse ao $22 


as a 7 J 
Ta ae 
i, Md , i a 
1 F i EB wa 
‘ ¥ b 7 “Many PAD a Lar 
7 a ris nee le a ; 
; z ee 


| 
o a] 
ae #8 ms ‘ 


| ad 
* 


Sa 


Pot 


ie 
NI 


PROBLEM NO. 62. 
(Ohio C. P. A. Examination) 


The following is a preclosing trial balance as at December 
$1, 1913, prepared from the ledger of Messrs. Joseph & Johnson, 
commission merchants: 


Debits . Credits 
Bo B.cvoserh = Papitar faeeamnt. “> 29 °sRmi ee a -§ 50,000.00 
Ge De sohnaon “Capi tai’ Aecount: “3° [@~ feeieige eahs, BD 7,000 .00 
vag ee os Ss a eres... fk POR Oemem . Pb1 588.10.” 
Customers . » « BLSStaeeeu 195,625.30 
Buckeye Worsted Mills Consignnent Sales 215,720.60 215,720-60 
Freignt ch ake Mk r= s aarti od - ee : 18,652.70 10,562.60 
COMERS oases) eee Eee kt sarees eon, Get Baie. UG 
Discount Allowed . ; Li SonwraD ey: | 
Buckeye Worsted Mills Current “Account 50,000.00 62,988.41 
General Expenses . . rye ke 10,000.00 
Buckeye Worsted Mills Advances oe sale BOG ae 120,803.53 
Totals . « . . «+. $1.008,454.60  $1,008,454.60 


The bookkeeper is seriously i11, and the firm of C. P. & A. 
(by whom you are employed as a senior accountant} has been re-= 
quested to prepare from this data - without an audit of the books - 
a balance sheet, and to determine what the profits or losses for 
the year have been. 


Mz. Johnson, one of the partners, brought this trial baiance 
to the office, and furnished the following additional facts: 


The firm started business January 1, 1913, with a cash capital 
of $100,000.00, of which each partner contributed one-half. 


The firm does business with the Buckeye Woretey Mills, under 
a contract whereby it handles, on consignment, the product of the 
Buckeye Worsted Mills ee ele a The contract provides for an 
advance to the mills of 70% of the billed value upon shipment of 
the goods from the mills. All sales are made at an advance of 25% 
over billing price of the milis, and Bett iemen cs for sales are 
made with the mills montaly, less a 10% commission, iess freight 
and cartage on the goods solid, and less the advances made on the 
goods sold. The shipments made during the year amounted, at bill- 
ing price of the mills, to $389,632.00. 


Your principal also furnishes you with the following ex- 
pianations concerning the operation of two of the accounts shown 


on the trial balance: 
164 








ry OM aIEORE ” 
(qottoatnext ak T 0 oHtON 


ssdiaineel a8 és: 5, gone fed retat aateolestT 8 
RS s “aaah ,eTsso TO aun edt nor? 


uae  ptided Sia i ROT | 
| suieuee fatiged ea 


50.000, 02 hi + . -* 8 * . * e 

00,000 ,0¢ By, Sie »tms0908 fstiasd ~ mosan * 

ef. gat, [8s ae, “eft eet See we Mae i 4 oe a 

Oe.aga.eer 09.05T,cf6 « . eremotes “a 

of. 08% 215 08. 0S" 2f5 gore thelmstaace Sree botero ev Ce 

HS. sat. ol OF.£00 (BE ee | Oe agr gts bre os tox? a 

60.872, £8 A.) ee ee -enotoe tamed a 
| . vy Sv. 208s * bovolls tneooetd ” 

f3.88¢,80 00, 000,08 © * genfo00A nomi @trht pct gyotoul = 8 = 

| Phan OO. COR We More ue anegxad fereneD | y 

oa. 808 0S OL. 28%, 608 Baty ray  geomevbh elt int "poser svesoud 4 

08. 23, 800. L8 Od, b68, 1b 800 fe - ae, - atatot ae 
Ad WED: To ek ent bas ae iowotgae at be sega a 
ao peyolgs ror) Sa ig 


wor meed acd (tassmy0008 soinee 6 
ms fwodtiv - steb tds tek 3 sages oP De ee “petaeu 


~»W etood edt To tiouve 
ony tore gatuxreteb ot bre tie 


rot aongol 10 ef hiotq 
se pied 200 Teey eg 


sonelad Istad atdd ddguord watoadisg edt "(ei eat ee 
‘gtost Lenotstbbhs gainollot eat bode haart bas ,eottto edt oF 


{sticeo deao 8 ad bw ,orer ,f yxavast eoonteud betists- — eat, 
» tiad-onmo potud bud 90 soatxed ose pia to « k . 


ee 










xebru ,elfin . betero? eysioud ext ao 
ent Xo soubor erid  tromagianoo fo 
as rot asbiverg soatd00 gat 
to taemyide moqu outsv. pelfiid ent 20 
tas to gonev be ne $6 obem ore aeise oe 
ete aolas tot adaomelst oe 58 
tdgtett aeoel rotee Eanmoo SOL 8 abet 
saat co ebei esonmarhs edt neel fae tse: 
aflid ts ,bedmvons ta9y dt Borde2. 


nolsot odt atin yoy aed. 
mode Bfarooos edz to ont to molse’ 


48 
Buckeye Worsted Mills - Consignment Sales 


This account is credited with sales and debited with 
the monthly settlements. 


Freight and Cartage 


The debits in this account measure the freight 
and cartage paid on shipments made to the firm, 
and the credits measure the deductions for 
freight and cartage made in the settlements with 
the mills; 


You ars ssked to submit: 


(a) Ledger accounts exhibiting in summary form the entries for. 


the year's transactions, each entry in the several ledger 
accounts cross--indexed by nuvber so as to identify the 
Same with the contra debit or credit in another ledger 
account. 


(db) A statement of the profits or losses. 


) A balence gheet as at December 31. 


(d) The value of the consigned goods unsold at the billing 


price of the mills. 
164 


—2o ess 



















‘jie 


gefet dmomrgionod - efTtn botetol | 

a 

<tiw batided bas eoles dtin bot tber® sb tau 
j q ee eee 

atnomelites ¥ta 


ogstiso bas figterT  " TiS 
; ; Mos 7), 
daatort odd eypasem Tuyooos atdt mi etided om 
matt edz oF shes eftmemgtide mo bteq egatiso 4! j 
~ot efoltoubeb odd etyecom ettbero edt Dane 

itiv otronelites: ody ni ebsm sget1s9 tne teigies 
| relllm eat 


pimedua of bewer ems WOT 


atadne sat wrot yrsmavs at satt ic idxe ad myroonF sorted (6) 
£ Isteveo odd at yiitne close ~arolstosanet?2 a'xsey ont. ni 
¢ vtiinebi of 6a 08 vedas Yd bezebat--cso-° eimucoos A 
ahaf vodionse mi sibexro to sideb axtaoo od? atic ans 

. tsIOOOL 


had 
-aesaol zo e¢itéxg sav) te seeneteta A (0) 


‘£8 xedmooed ts as. teeie eomaicd 4 {o) 


oo oat to ovlev of? (Bh) 


sd ts bloeny aboog Semgten | re 
efits edé to solitd 


wt POL 


> a4 - ~~ 1s 


PROBLEM NO. 60. 
(N.Y, oC.P. As Examination) 


John Does, a manufacturer's agent who starts in business 
th & cash capital of $15,000, receives from the manufacturer 


wit 
$45,0C0 worth of goods on consignment, subject to a discount 
of 5% when he pays for the goods. 


Doe pays freight amou iInting to $1,400 and allows claims for 
damaged goods amounting to oi. 500, the total of which is charge- 
able to the manufacturer. He sells all of the consigned Zhe 
for.a total of $60,000 and receives $44,000 from his customers 
allowing them in settlement of the accounts S400 discount and 
(000 for defective goods. He makes the following payments: 
$2,100 for*freight, of which $1, 400 is chargeable to. the 
manufacturer as noted above, and {900 for expenses; he also pays 
the manufacturer $37,950. 


Prepare account of sales to be rendered to the manufacturer, 
Siaee aihanken. statement of profit and loss and statement of 
Capital account. 


Ref. 48-6 
164 


ro} 

“og eado 

eboog bony 

rowotaua aid ott 000,80 eevteoet dro 000,08") 70 && 
+ 


aeeniega at atisie. odv JOP ‘e’zetutos than 4g 
wavotostumen oft mort sovisoes ,0CO,2af¢ t6 Is ae 


me Javoesth oC atntrong. s edd to tnreuefites af mpd? ant 


om 0 + aS ae ie obs " yom “Fre 
TOWPORIVAAM OCT OF BSetoDNs 


5 | : ji i 
MEIGORT 

















oay ridertmexd sh a ter 


favoogth e of tooeftdrya i catrmtfangs fo aboon ~ aay 
| | »phooy eft 1OT eyeq © 


fo evotis bas 0b, fo og ged gayoms déotext ayer 
ai dotdr to fstot edt ,00G.[U oF nattavoms 
exntunoo edt to [fe elfse sti SSIs OL Dye | 


eret 


Fa] 


be 


fadmemyad anivol ‘Lot edt sexan oH ,sbooe evitoeitsh 10%. DOe, 
it of -doegmane af 008 £9 Gotcer to ,tdgiout tot OO. ge) 
‘exe rot OOEGY Drts. _ gavods botanm as yorrsos ues 


- oe ee : | . 4068.1 Bi texuion tess edt 










li 


< od of aofas to truoose StAgevT 
io #Memodcte ban eaol baa tiierq to Parewedess steals: soaatad E 
f otrairg fe FIGs 


CORPORATION ACCOUNTING 50 
PROBLEM NO. 64, 
(TLlinotes(O¢ oP: AY Examination. ) 


A. J. Andrews has conducted a retail business for three 
years. His profits have been $7,000.00 for 1913, $8,000.00 for 
1914, and $10,000.00 for 1915 before charging any salary for his 
own services. In order to obtain the capital needed to purchase 
the new fixtures necessary in a new store which he proposes to 
lease, and also to increase his stock of merchandise, he decides 
to incorporate on December 31, 1915, for $50,000,00 and to sell 
part of the capital stock. 

C. F. Martin agrees to purchase $20,000.00 of the stock at 
par and to pay for it immediately. It is also agreed that in the 
new corporation Andrews ts to be allowed credit for goodwill equal 
to the sum of hia profits for the past three years after deduct- 
ing an annual salary of $4,000.00. 


Draft the journal entries necessary to adapt Andrews! books 
for use as the books of the corporation, and prepare a balance 
sheet showing the conditions as completed. 


Andrews presents the following list of assets and liabilities 
which Martin accevts as correct: 


ASSETS 


Furniture and Fixtures: Book value, $6,000.00; 

worth, 54,000.00 ; 
Merchandise: Market value, $20, 000.00, cost, $18,000.00 
Accounts Radeivable : Book value 36, 500, OU, 


. Collectable, 96,000. 00 
Cash, 5400.00 


LIABILITIE 
Trade Crecitors: $8,900.00 


Bank Loans: $1,500. 360 
164 




























(08s serbmsxe oA Pa: | Pe) : . n 


condtt tot epontest! [tate s betoubroo pom wets 
‘to? 00,.000,8¢ ,cLe@L tot 00,000, 0% reed evad et itor 
ati te% arise vie gotaredo etoted é£ef sot 00.000,0. 
onadiried o¢ bebosn isiiqeo edt mtatdo o¢ tebio at .eeolve . 
ot soeogorg ed doltdw otote wen a ml yiserecem eetwexit wen os 
webioeh onl ,eetbnecdorem To Yoote eld eesetont o¢ oels bas ,eesel 
f{se ot bas 00,000,08¢ to? bsp éE todneoeT mo pins amon al o¢ 
19028 Depicted.) 9 eid to vate iL 


te gootk: eft to 00.000, ose esueeaie ot esety, neal a) ee 
od at teat beowa3 oels et $I .¥leteatbeomt + gives yeq ot Sts t8q | 
faso9 [Liwbooa tol sibetos Hbewolls ed of si ewerthaA moktetoqio® wom 8 | 
~torbeb setts exsoy eeudt tesq ot tot atitox; ein to ove oft of =| 
-00.000,23 te viel BE feunne as gat 


elood ‘ewer tqeabs ot vtseneoon ‘pebitae Larcwrot oft Pisa 
somafed 5 sxeqoiq bas ,moktstogtoo eft to adood of! 23 een “ot 
-betefqmoo es anoksibmod oft gniwote toore— 
cotstifidert bre etoaes to tefl antwollotr oct. etnoces? ewe tina 
stoent0o 28 ita cessing attra este . 


OTasea 
:00. 000.8% ou fev wood Lcomtaet rar erurd beet 
: 06,000, 45 eisitow i . / 
00.000, Sf£% .teon .00.000,088 ,enrfasv te:! :selhnenortel (val) 
.00,0046 98 ~sulsy Nool :ofdavleser staene = 
00,000,862 ,sfdetoel [od | Ce | 
eqITIIgali | 


00,000 8 “rerodibor) ebsxt 
8 008, fy iemsod naa 


a a 7 , F ts, ae | % ty 7 
> ; : - Cay Tsay owe ere Pe Says ep: 


PROBLEM NO. 65 SL 
(N.Y... (G.PSA. BxOhinetion) 


A buys a gas business at receiver's sale, taking over the 
entire plant, sub ject to a bonded indebtedness of 9,500. A sells 
the same to the B Gas company, incorporated under the laws of 
the State of New York for the purpose of acquiring this property 
from him, and having an authorized capital of $30,000, divided 
into 300 shares of $100 each. C, D and E fabeoribe each for one 
share of the capital stock of the company, and the company pur- 
chases the property from A for 297 shares and assumes the bonded 
indebtedness stated. 


On mal cing and apvraising an inventory of the property for 
the purpose of distribution to proper accounts, the following 
conservative values, exclusive of good will, franchise rights, 
etc.,, are ascertained: 


DUO RAS eae aed a bola st as 2 aes se oo He Ate ae oe ee COU ROO 
Buildings.....-...... pe ee ital dts? wa cece <9 ee a Aa 6,000.00 
Coal-gas plant, machinery and A Pete tag Pe eee, 3,800.00 
Watere-gas pliant, machinery and fittings....e...-.0, 6,000.00 
DE MAELS cis ie 8 Caen * dick note eae ia € pd 4, in © ee ad 27,000.00 
ERE C Ad ene 1 A EY A? oo td OOo & Se ORS Bat 1,900.00 
Ps LOG e Aas OA Pai ia Pe 8 eee a ee hen ke RLS 1,500.00 
Office furniture and fix PU DB ais ss e's o's ae eee 500.00 
AVI 9 Mie D9 PNG ct Mee AL a ee a Per eS ee 1,200.00 

$49,000.00 


Frame the necessary entries to open the company's books 
and ahow the capital stock and the rixed assets on the face of 
the ledger. Prepare @ balance sheet, 


164 




























20 .OH MATEO a 
iy Pt) 
(nobtantmaxt AS.0 bis a 
ony i8v9 as bras at seybeoott ts neortt auc gay 6 
nffee A .008,.0:: to seonbotdohnt bebnod s of toot 
20 ewal. etd soba Sotstogtoont ,ymaqmoo & Ss 
vtrecetq afd aabrtipos *o Seogtug ‘edt tot ano 
Fehivib .000,05) to Iattqass ign ean ee na aniver 
aro tot one edixoedve FT brie qc i986 OOLL to” 
atig yonqmos oft Has ,ynaqmos fay to sloote | esti 
behnod off senutess. baa eottara he) 02 A mort ean - peeedo 
| etude . oe xrbesd “a , 
‘sot vtvoqotq ods to ytotaevat ae antetoiggs Brie ae : os 
 aatwoflot ert .etnvodon teqotq o “gotducdPaterb edd ae 


weteigicn eektonast ,{i tw boos to Ae patent ,eoulav ara eins , 
: ben istieses ore Sede ae? a) 





fine bs 


- 00.000,8 ae Ra » 
00.000 ,a.. ck en oo 6.6 cook bse.e ties e 8 dk ae aa eth 
00.008, 5 weccccccceeee®Qntdsit Sue ytontdoam .dasiq esg~-[200 
00.900,9 eoosccesescetmtrgas One ven trfoast asiq eagetotaW a 
00.000, %8 - en ene Fe } 
00.006, £ ceresnes neransna snitdNs - eaa a aacee! ; 
00 .0O8.f ih as a. ae ee eee ee a earns elic 
00.00 Sa bp ee acl eiemee ane aera a: Bis etust ; 


view: 6:0 09 Sakis oy ade ee 6! i eteons 

00,000,254 errs | rea ae Oe Shiv eee a 
eood a'vneqnoa oft meqo oF pein yinesees ert omenl 

%o 9ont of* so etoses hexlt ont bane Yoote Latiqes edt wode Sas 

. teeta consied s Sisqers »toubel ert, 


_ Eel ten 





00, 008 Lf see +e eee 


SOL 





PROBLEM NO. 66. Oa 
(N.Ye. °C. POAP Bremination) 


A company having assets consisting of real estate $50,000, 
plant and machinery STBs 000, book debts 636,000, stock on hand 
$42,000 and iiabdilities consisting of bile payable $16,000, 
transfers its entire business January 1yfl896, toned joint stock Ce. 

for $75,000 in bonds, $75,000 in preferred stock and £75,000 in 
common stock. Male the necessary opening entries for the above, 
and show how the ledger accounts would stand. 


PROBLEM NO. 6%. ' 
(N,¥. C.P.A. Examination) 


A corporation is organized. to conduct a manufacturing busi- 
ness with a declared capital of $2,000,000, divided into 50, 000 
shared (Gf athe tparvvaituenof S100, of which: 15,000 shares or 
$1,500,000 shall be preferred stock and 5,000 shares or $500,000 
eommon stock. The corporation purposes to issue $500, 000 in con- 
solidated mortgage bonds to be used toward the purchase of sundry 
properties.. Tne amount of capital with which the corporation 
bite tee business is 350,000, being the proceéds of Beer teh one 
for 500 shares preferred stock. 


To carry out the purposes of said corporation, the real 
6state water power, machinery, goodwill, ete of certain existing 
porpocecions have been purchased at an appraised valuation of 
Oe 000,000, viz. Diamond m'f'g Co. $200,000, Surela mit 2) 26, 

4300, 000, Champion m'f'gs co. $500,000 American m'f'g co. $600,000, 
Aetna mt Pl p co. $400,000, and in payment full paid stock and 
bonds have been issued at par on a basis of 60% in preferred 
stock, 20% in common stoc*: and 20% in bonds. 


Material and supplies are to be paid for in cash when their 
value is determined. 


Formulate the entry necessary to open the books of the new 
corporation. 


Ref. 5a) 


j~ 
© 
oS 





000,088 stateo inot 
fo Monte .000,c 


brent 


} Mpocse 


Piss. HOO. oY 
,evode ond tol selutne snimego, piseeogea eid ela .Moose momuco | 
Saate bisow etnvosos segbel ez it word wole Dis 
YO 404, MAIEORT 
. ; , f uM \ 
(cottaatmaxd 4A.%s0 . -¥eil) 
tyutortunent @ JovSaos OF bes Esgro ei pitta: Soy A | 
tat Hebivth ,000,000,8% to Ladtqss beteloeb s {Ziv neon 
> pocere 000,aL dotdw to .00L Fe episy taq ord to eoren 
To 29tnrie 900,0 bas Asove DOTIOIITG od ffsrle 000.008 , £2 
i. NO,0025 sueet od eeeogiwd aolgstoR ies eit. .voo¢e, roamoo ; 
sta 30 oeacotve oft Stawot bees od ox >prtod snagtioc: Setahifos P, 
noktaxogteo aly dotdw div {etigss to sauons oni 6» -eetatogotg 
tdqitsadiue to aboasotg oft anted . 006 , G5 et esertesd weatsod 
loode Dorrteteaq esters O08 Ot 
sx adt ,aoktaroqtos bisa 10 aseogtig ond F170 WHEELS om 
tigizxe mtaties to ove ,fitwhoog .yYorninoan _ tered soso oTPJaAs 
ro MobteuIeav hookestqgs me os horcsr Ontang seed ever 2B: Okt st ogteD 
09°23 ¥ rf A ar thnk ct OOO ~O0S : co mM, t ¥ +! my Aor ied eniv e900, 090 «om 
000.0089 soo gy t's neolt ari 300.0082, oo wt! or oko mat fe 000, 008% 
hos Noote Sina {Lot Yaerryeq at Has (000,008) .09 8 tat in SotoA 
hatretese nt 800 to ateancd # mo 18q Js S°vest MS9C eved ebaad 
~ahotod ni 20S bra voote momago af vOS pNoode ’ 
’ + codw “eno ak tot blaq ed oF ots estiqqve brs. Isivorel / 
“sbeaiinnateb ek eniiae 7 
= to exvfood eds aneqo oF yteeneosa YusTS eth etaLumio% 


4 HOO ~ ot eS 


eee 
tarot 


wea “pote potreteta at 000,cT¢ \ebaod 




































- » 


i wnragioo i” + 

> atdeb: steed ,000,8Ty) ¥ Gal 2 Pi Bre tusig 
Gati bas 000,934 
oJ state satst 
900.4% so" 







Ze) aritdebonoe atesse 








eldevec, eiitd Youanttatenoo eeltiii¢ 
{ ,f yiaunsl esenteud on toes 


:; se 
, m sor 
eS. Ov Ove 4 









morte rowieo 


{+o * 198 


sae 


ery ae 


Tie ote eM 


PROBLEM NO. 68 53 
(N.Y. OLPLAy Bkeetiiaeoion) 


Tre Domestic manufacturing company, organized with a capital 
stock of (35,000,000, one-half preferred stock and one-half common 
svock, sells five shares of common stock at par for cash. . It 
issues to Jonn Jones $1,500,000 preferred stock and Sl, O00 ,000  . 
common stock in consideration of the assignment by him of certain 
patents, rights and contracts. Later, Jones agrees to surrender 
ror valuable consideration to the treasurer of the Domestic mfg. 
Co. $1,000,000 common stock and 500,000 preferred stock. Still 
later, Jones agrees with the Domestic mfg. VOe tO Surrender 

tale 000, OOC preferred stock and to take ‘in lieu thereof $1,000,000. 
common stock. Jones makes ea further agreement with the Domestic - 
Mie. CO vo Celiver to 1% all the stock in the Blank meg. | COe, 
aopraisec at $350,000, and to pay the Domestic mfg. co. ties 000, 
for which he is to receive 500,000 in preferred stock “of. 4 
Domestic mfe. CO. 


Illustrate by journal entries the necessary accounts to. be 
opened on the books of the Domestic mfg. co. to show each step — 
taken in the forégoing agreement. 


Ref. Yel. 
164 













conten, 8 os pos tnagto _yersegino a aa ie 
no bas sioote ervexet4 ae 


aes ar re ‘cot taq 38 sigods  aramanrog. 40 
AIG ban wWoote berte kom.’ 


900, ' 
nbedeo to “eid yd ta 
sohnetime of 2995S genol eat 
atm ot¢eemod ods 
Cfise .foose Hera tOnd . 
rm stteenod 


sobhrotitie oF 200 3 
000, 600,12 toerecds? pert al saat of aed ‘alo | 
ee:tam eoriolL 


“pidaemod ett atiw tanomeotgs qostut. & 
4200 +3 atm wee lS ent mf soote ett, {Ls tir of yey 


“000. Oafe .o0 eB otgeemod ent ved ot bas ,000, 
ertt 20 bat Harte Teg | od 900 evieoot oF & £ edi dotsw: tot 
P Wnbatitts’ Toole ,0o + ae 


q 


, od me etnoo0s vergeeoood ory sotnsce faqrge : 
| -t18ri9® 


BOL 


PROBLEM NO. 69. 54 
(N.Y. C.PeA. Examination) 


Charles and Robert Wilson are copartners in a manufacturing 
business, trading under the firm name of Wilson Brus. Following 
is a statement of the firm's financial condition December 31, 
1900: 

Real estate and buildings $165,000 Notes payable..% 4,000 © 

Machinery and fixtures... 39,000 2,000 $ 6,000 

Horses, trucks and harness 4,500 Accounts A 
payables s «scm L0,000 


PEVORGS owe oe a +e 2 alee s wae 1,500 10,000 
Stocks and matériais...... 20,000 10, 000 
Notes and loans receiva- 4,000 54,000 


ee ee eee 


DAG Y » wa se ee Seg eee 3,000 
Charles Wilson (capital)150,000 
ABQPUNT SURE tsi VROle...0..- 15,000 





: _ Robert Wilson i 60,000 
$250 , 000 3250, 000 


A joint stock company under the corporate title cf Wilson & . 

Wilson, incorporated, is organized with a capital of ¢ 8300, COO, 
of which $60,000 is 8h cumulative preferred stock ara: 240, 000 
common stock (both $100 par value) to acauire and conduct the 
business of ‘lilson Bros. Charles and Robert Vilson and Henry 
Miller each subscribe for $10,000 of common stock. The company 
votes to acquire the interest of Charles and Robert Wilscn in 

tne bvsiness,-reel estate, plant, outs itanding accounts etc. of 
Wilson Bros. and to assume the firm' s indebtedness of $40,000, 

in consideration cf the sum of $210,000, and to vay therefor 
2,100 shares of the common steck of the corperation, 1,500 shares 
to be issued in the name of Charies Wilson and 600 shares in the 
name of Robert Wilson. The company votes to place a mortgage on 
its real estate and plant for $50,000 to secure an issue of 
p02 000 first mortgage 5% gold bonds of the Cencmination of 

51,000 each. The creditors subscribe for preferred stock to the 
amount Cf 50% cf the amcunts due tc them and take bonds at par 
for thésaremaincer, 


fake all entries for the foregcing transactions in the order 
of their occurrence, giving the details to be found in ledgers 
and all svbsiciary books of account and record. 


Ref. 11-6 
164 


) 
vos 
























Pai ee 


308 OH MEIBORT a 
ey (nordocckrieest ATs oh Xe 
ghttwdoetenew @ me etendtaqoo 618 se 


gaiwof Coy 9956 Moel iy to simec. me 
ne soda a | 











R Borstonesa eodou obo.c8t epntbLe ut ng a2 Bice ote 


900.9 & 4 ee BO we 
_ agawoaei, Goes. adacned or a sae 
a -oideyaq. - . ree pe 9 
| aor s swe + oss bes afew ee ae o . 
a4 10,08 rere res Bae 
900,80 "nay taget ensol 


| ia: ae | 00 ,.o reeves tupne sede seweee® 
000 ,OcI( fadfamo) soel hi 2oitadd eth : 
i . ree i‘ it inereanen* .«s6idant909%, edaurvoos 
O00 08 5) tees noeLHy dxadod ° im. 


O00 iy ; é 
900.088 90,0888 = 
2 noeLen %o eftit etetogioo siz nebriss rACHHT BOOTS 
909 005% to [atiqso « dtiw bestnesto ef ,hbeterogios. 
000.0282 Bas xdoote heausterq evitetsimus XB ef 000,08) Ao 
edt toubmoo has ettupos ot feulav isq QOL) mdod) Mood: 
yaneH bis coeLb/) dxedof bas cofaedd .208a moe’ to ae oe 
yaagows ecT. <Xoo¢te mommoo to 000,0L4 aot edfasedve dose melt ty: 
ai moefi:’ trsdofl bas es{iedd to teotedel edd satigpos hd ass gov 
to .o¢6 etnuovos natbaddedyo .tasiq .otateo Leet eteernsend | 
.000,08 to esonbotdebal elartt ort omveas of Baa .2o 
motetodd yaa o¢ Bas “900 .OLS3 to mwve end Fo sey tisha : 
aotada OOG.f ,aoltstootos ent to aoote moms Ont to eorsdte OOL.S 
edd ak gorade O68 Sas moellty eeLtadd to onsm ot mi bevees od ‘oF 
no snagtion & soafg ot aetov Yraqmoo edt .noeliW dredoh Yo oman 
to Sueat ae ensooe of 000,08) 10? guBi¢ Sue otacao: oe ast 
to motdenisones eds to eSnod blhop AE egsadctonr serki 
ont of voote hettolerq tot sdiscedye esistifeto sdf amos 
taq gs ebnod ovat faa met o¢ ou etnoms ols 22 208 



















sabto oct ot enoltosanert grtogeto? oct a? csixdme Loo 
ied mi Soot ad ot elleteb ont raj ~ IOOVE 
-bagdorn bas radtakiud | 


PROBLEM NO. 70 oye 
(N.Y. .G,PlAy heen nearion) 


A firm selling out to a corporation has assets as follows: 
cash $500, bills receivable 61, 200, accounts receivable $8,000, 
merchandise $2,000, fixtures 3600. Its liabilities: are bills 
payable £15, 000, accounts payable $2,500. Its gcvdwill is valued 
at 5,000. The venders are to take capital stock of the corpor- 
ation for their net interest in the business, inclusive of gocd- 
will. They guarantee the bills and accounts receivable, and it 
is arranged that any items uncollected at the end of one year 
from the date of agreement are tc be charged against the apparent. 
net worth at the date cf transfer. A note cf $200 and an account 
of $800 remain on the books at the clcse of the year. 


Open tne books of the new corporation and make entries for 
final adjustment. 


Ref. 15-4 
PROBLEM NO. Yi. 
(NiY.'/ OC.Pi A.’ Examination) 


A firm whose resources and liabilities are stated below is 
converted into a corporation. 


ASSETS 
Rea CSUACE! BNC TMpPPrOVEMENtsS, «assseransev ba aewesee 64,500 
See SO ee tence hath oe rele edo Nw a} e 8 o.alwe ea a Ce eet G od 15,500 
DOGGONE Ss PECELVADLG. seis see snes 8 ee ele vols ees 8b Bie 0 5,400 
ites Ca Me 1 ee gad ing (EME Edie! sig |p gigantea teem eel Ott eran z ,600 
$88 , OOO 


LIABILITIES 
: % : 
Acccunts payable eoeoeeteged0eoesecscee¢egebssntrseesvseeseeeeoeerssknseeeeeseeeasde $ 7,000 
Bills vavable. aa doeaseosb es, oa ce Qeuiovsv ees @€@6 © @€ 68 O86 6 0 6 6 29,000 
ee eRe OLY its 72a psi yee 40 6-8 Aether aber ees ler tars 55,200 


$88 , OOO 


The corperaticn receives all the assets except the cash, and 
assumes payment of the accounts Pave ees but not of the bills pay- 
able « The real estate and improvements are taken over at a value 
of $100,000, and the gccdwill is ccnsidered worth (‘,20 es The 
purchasé price is tc be paid as follows: 633,100 in cash, $50,000 
in bonds and $50,000 in capital stcck cf the corneraticn. What 
entries are necessary to close the bouks cf the firm and to per 
the books of the corporation? 


Ref. 16-5 
164 
































inereaqde elt tenisys. to oteb” 
Snfooos ma bas OOSY To stom A .tetecett to ese acid ta: | 
edt to eeole ens te exood ory A abanion 0088 


Ma ac ON OE, MctaOss, 
(notsenimexd ks 1.0, een 


rewollo as eteses escl noptetognoo 8 OF tet 
000.8 afcavisoet atavoobs ,OO8, fo eldav ies 
etird age wotsitidail edt 008). gomudxtt ,000,5. 
hevfav af ILiwboog est 008.88 eldeysq- “a dr1r0908 OC 
«togteo sat To sioois Latiqss otes ot ete eirebaov Sf s 
«h303 To eviestloni .e2ontend edt ni testeotnt ton treme es) 
ti Been ,eidavicoe ‘edtsooos brs aftid orit cosnstase ort 
fe9y eno To Orie eta ta betosLLoons emezt yas 
soatado ed ys Sts tnenieetgs T 


«TAOY 
“or aoitins sxam bae nobktatogios wen. eid Yo ‘aslood ort neqo 
3 | »tremtent 5s iaee 


eM b-2f .208 
10 OM MalaOnt 


(nottenimexd .A.d. 9 eh) 


»t wofed berste 918 eetéritdarl Ons asocttross®. eave aprit A 
snotsietog Toe g o¢at bedasvcoo 


erseza | 


002 ,.bO0g oa vieenes ee eadmomovorgm bre osngso Lean 
000.41 ola enenn so bp gene 4804 0.99.0 5P O20 Se brtacio re 
GOS, 6 oe ile ba nm ayees (eat ne roe 
ad 


: cena ee ee? S 


008, ale bb's ee oe WOE Oe Mh ae 
000.68? 
BAT TTITGAL a8 
” a | { 
008.7 & Oh a ane ssagooes 
ee * . 22 9Lca™ [ta 


peeve vareeeoe® 


000,68 a ¢eetevetesceeaee?r” 
00S ,o¢ eov gee 
000 28% 
‘baa ,feso edt TyesKe eteees ort nr nevieser mo ltanogte 
ayaa aff{id arts to ton tud eflcsyaq etowooos ort Zo gems rer 
“eufav e ta tovo needs 958 atjemavorgmt Sas otates Lset oct _ofde - 
sit ,000,0S, Adtow 5etebteale at eyes ee » 000, 00L¢ To 
O00 ,0Gy . 280 mt OOL. ao. »eWo- frot es blag ot al oo irc censeny: 
tarny twrs atvexoo sit+ 27 uote Istigse & | | bi 
mnogo of bas mit edd to estood ent seolo Sean 


- otekaae eee a seaeheeoueee vy? ,agauoo08 ett 










PROBLEM NO. 72. 56 
(N.Y. C.P.A. Bxamination) 


A corporation tock over the business of an individual whose 
books showed him to be worth $125,000, for the sum of $200,000, 
payable $50,0CO in bonds, $50,000 in oreferred staal, 50, 000 in 
common stock and the remainder in cash. The capital of the 
company was $100,000 preferred stock and $100,000 common stock, 
and bonds were issued for $100,000. According to the subscrip- 
tions the stock was tc be paid in as LODE te 10% on application, 
40% in 30 cays after allotment and 50% in three months there- 


after. On the bonds 10% was to be paid on application and the. 
balance in 50 days after allctment. 


Make the necessary journal entries on the books of the 
company to cover these transacticns in accordance with the 
statement following: 


PRGUOR TPES O1ENE a GAs cece ae etaane | BHO, QU0 

Re CON BE aaa sn Sake ble #4 0 es ore oe weHt 20,000 

UNIAN SNSC OF CES. csc c eee race escene 15,000 

ACCOUNTS TWECELVADILGd a Pals oe viva remes 25,000 

CEM ee sek ke bs dae e nesses seeeseseteeee, | bepOU | 
BOCHUAT BMA VEU ES wig iiss tikie HITS F.0d, «Olde $25 , O00 


Make journal entries clesing the books of the individual 
vendor. | 


Ref. 18-2 
164 

























89 .Ou wtsae0m t oi: 
(cobtantmexd oh. 0 vt) 


nna NT ae jo eeontend orld aoe i ‘ood aon qTo 
¢f to nue oft 10% ,000,88f¢° bat Sp ft : 
nt 000, 08, ,Moote bette of 000,089 , 

ors %o Ieticso ort ..fesd mt pees | 
~zoose mommoo 000,00[% bre Asose boxrete%g 000,¢ 
-qittoedue ond of gitbto99A 2900, 00L% 0% boveet 
emoltssifogs no ROL :ewollot ea at biag ed oF eaw 2 

-~91eHt ecftromt eenit nt 808 bas taomsotle neste 
ed2 Sra saan mo bisq od o¢ eaw wOL eSnod os 
+taomdolfa nevis patie: 08 





at lo exood dn no eattdae Lonavot yrneesoen ‘er ype 


ait débw eonsbtooos at eTOLTRRR EST? enor 19V09 2 
. iposnoslay ste 


000, ave Lavilis vad tine aa bee udieqotd 
000, es Wereee er ere eee Lea. 7 isivszem wea 
000, rofl d Seeheet eons ages eam Here falta 
000. ‘ag torancsen scenes «2 ORV EO@O% edasoood, 


a's ts 000% “OL Pereeereee ieee aL crept otal 
O00 cag 1 lierssss ee i soil 


foubivibat edi to exeod orld gatealo asiisiae Lawvissat, oles 
iy _stobaev 


ahi, <3 XK tae 
| A s.eth pete wet ‘Saf, ines 7 
: | bee 2: See | 





a ; a ad Ch ean ee) 
a) 4 =i | Th as vu iia 7 " sha 4, = oii 


PROBLEM NO. 73. 57 
(N.Y.  €.PsA. Beeminarion) 


A owns a business that he wishes to enlarge and arranges 
with B to turn it into a corporation. It is mutually agreed 
that all customers! acccunts shall be kept cut of the deal but 
the new company is to undertake to collect them for A. A's 
inde stedness is to be paid out of this collection, or if it 
orove insufficient, A must make good the deficiency. For the 
nurpose of this sale the merchandise on hand is valued at 
(25,000, the store building at $15,000 and the goodwill at 
$5,000. A is to receive in settlement cash $5,000 and the capi- 
tal stock for the remainder. Bis to invest a sum equal to that 
of A. The statement of A at. the date cf transfer shows: 


Assets Liabilities 


Real estate...ee.-s+. $12,000 Accounts payable........ $ 5,000 
MEPGNaNGL SS pais sess eon SG sO00 Capitals. seacedtesweeess-- 45,000 
Accounts receivable... 3,000 
Cash seevereresseevee . 6000 


+ neces + cenegrannne 


“50,000 &50,000 


At the end cf G6 months an accounting is had between the cor- 
poration and A. Of the outstanding accounts $4,500 has been 
collected and applied toward liquidating the indebtedness. it 
is then agreed that the ccmpany shall take over the remaining 
uncoilectec accounts and assume the remaining liability on ac- 
count of creditors cf A. 


Close the books cf A in accordance with egreement of sale 
and subsequent arrangement. Open the bocks of the ccrpcraticn. 
Show the entries in the books cf the company as to its transac- 
tions for account of A at the time of forming the ccrporation. 


Ref. 20-1] 
164 





















‘a | Ra . 
oY .OW MAIEOAS 


(nobtectmexdyeAs%. 0 se immmnn | 


ve 


gognetia bas ogisine of 2oreiw of tatit eeoniend st 
pesias vitsviuma et 31 wtwitexogtoo 8 odal Th ming 
gud {seb oat to tuo sqed od Lfase eseuooas Secesodeuo 
etA wh tot mods stoolfoo ot ovatuobay oF ef YASQMOO 

$t YF qo .nottoolLoo aint to juo bisq od ot of. abodes. 

edt sol .youetotieb edt bog exam geua A ,daefoliiven. ovo 

ta bexlavy ef Sas ao oe fonedo 18h eat otse vey Ot BOC INC 
ge Iftwhoos edt Sis 000,8L) ts antl tud outs OH ieee 3, 

«iqeo ent ons 000,82) deao tnemelties nck oviecet o et A 
tadt ot [avpo me 8 teevat od ef & .wabatamet ond tot Hoe 
. yotenets to etab ond .gae A to gaenegeta of 


000, 
ge fs 


a 
ea eee 
2 V 


5 
’ tawoiueg 


7 


etoacdl. 


eottifkoalt bs es ee 
: 090,¢ Y ssceces OLGBY aq etmuyooa4 oom Pay | fso% 
000 , G2 eee CPR Bese? ‘tense 000.” ] ‘yerecsee es s0Gibaadorol 
00045 ~~ +s9fdaviooes egmyoooa ; 
000.5 se aaah A Fit C4 8% 89 fead 


rena ~ <M 


: é : ’ 
-roo ot meowted Sad et auivaysooos ms artnon 8 to Sune edd SA 
jesd nad O08,85 adeuoges gulansdeduo alt tO «A due mottasogq 
di .ecendecdehat. edt antishiuol£ Brawos hetfaas baa Setoslfoo 
aniniamet oft Tove ofed Lface uneaqnwo edt tedd dootgs aerdt af 
moa oo YStiidatL gainisnet at smvess Sra etamyons Setoel.ooay 
3 . ‘yh to eames ibero “to sa09 


siae to tnemeetas mtiw sousbt09908 at A ta exdod ext ool) 

sautteroqioo edt To exood ads neqo wtremgadatis taoupoadve bra 

-oparetd ett of ea yraqnoo ot %5 exood ot mr salisns edt wode 
wtoktsioqieo eft gaintiot To subs ett ta A to taooes wot emols en 


@ jl 


ie 


fe stot 






Sof 


4 - ‘shia 
: : } 


PROBLEM NO. 74, 58 
(N.Y. C.P.A. Examination) 


The Prosperous Company is organized under the laws of the 
State of New York to conduct a manufacturing business. The 
authorized capital is $500,000, divided into $250,000 common and 
$250,000 preferred stock, par value of shares %100. Five incor- 
porators subscribe each for one share of conmon stock at face 
value. John Peters, one of the incorporators, purchases from 
three manufacturing companies their conplete plants for $499,500 
and transfers said plants to the Prosperous Company for the re- 
maining $499,500 of common and preferred stock and &300,000 of 
first mortgage 5% bonds cut of a total issue of bonds amounting 
to $150,000, leaving {50,000 of bonds in the treasury. The in- 
corporators then pay in cash for their respective subscriptions. 


The individual assets acquired are as follows: land and 
buildings $75,000; plant and machinery 200,000; tocls, equip- 
ment and fixtures $50,000; inventories $100, 000; accounts receiv- 
able, good $28,000, doubtful $5,000; cash sie, 000. 


Prépare (a) opening entries for the books of the Prosperous 
Company, (b) initial balance sheet showing the company's financial 
condition. 





82 
; 














(nots aatmaxt Aste 


edt to ewel ert rebrs bos inagtto et eoaqnod’ “aot 
on? «secontend sniiwdorxtuneam 8 tovbnos ¢ a 
bre mommnd 000,029? osm! bebivEb .000,00¢8 ef fad 
-tsont evlt 001% eetsdte to eulav tsq_ tyacda aa te 
393% a Noote momnoo to etade emo Tol dose odiapedue 
mov aeesiotwes ,evodatoqroonl ent Io ene .s 
008, 2CBE tot ednalq ctolquoa «ried? setasqmes gntaudoetuaom 
“9% oat tot ynsqmod avoreceote eat o¢ etnalq bina } bows sit bas 
to 000, 00L6 fae Xoote Serteteta bas mommoo to 008, 0b) gaia 
gaitavoms abaod to oveelt Latot 8 to dwo ebmod KC saagdaom ge 
“tt $07 .vawesert oft at ebaod to 000 08.) ansvael 1000 ,08L3 
samoity broedue evitooqees alert tot reso mat vsq ont ert 


bie heel :ewolfot es eva betivupos eteres Leubivibal on 
-qiupa ,efoot ;000,COS2 ,. wrentdoem base ag? 000, ave icy tity 

-vieces etayooor :000, 00L2 aeinatroval (000,00) sostxit te 
000, Ska 4B ao :000,c3 LIstitdwod 1000854 Boog 


evrorsqeortd orit to exood ode to? corrtne Bet (a) ree 
{felonsnt? atyneqmoo edt giiwocde teode somatad Isttint (d) TS m 
| | one sdaeeauais ois 


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od | i 





PROBLEM NO, 75. 59 
(N.Y. C.P.A. Bxamination) 


In accordance with the provision cf a plan drawn by its pros- 
pective manager, a syndicate is created for the purpose of obtain- 
ing control of certain business interests at present organizing 
in a neighboring state. The members of the syndicate have in con- 
sequence contributed $1,500,000 in cash, which, pending develop- 
ments, has been invested in railway bonds, acquired at par, and 
placed in the hands of a trustee. 


In due course the trustee enters inte an agreement witn the 
A. K. Company, organized with an authorized issue of $3,500,000 
of capital stcck, cf which 2,000 shares have already heen sub- 
scribed to and paid for by incorpcratcrs and others. - According 
to the terms of the agreement, the trustee is to deliver to the: 
company the securities that he holds, plus $'700,000 in cash, in 
exchange for the company's potential stock. In case, however, . 
the trustee should fail to pay the cash into the company's 
treasury within thirty days, he is tc return to the company two 
shares of stock for every $100 of cash not paid. 


The members of the syndicate having failed to respond to the 
demand of the trustee for additional contribution, the syndicate 
is dissolvec, and the trustee, unable to pay any cash, returns 
the stock to the company. 


Simuitanecusly a second syndicate is formed under the same 
manazeméent. It contracts to purchase at par the securities held 
by the A. K. Company, in ccnsideraticn of a bonus of three-fifths 
of the shares of stock surrendered by the first syndicate. Half 
of the purchase price is paid at once, the other half is payable 
one,montn, lavter.,.2a.¢.,;.June dO, 1911. 


Prepare: 
(a) The journal entries expressing the above facts on the 
books cf the A. K. Company. 
(b) The balance sheet cf the company at May 31, 1911. 
Ref. 54-3 
PROBLEM NO. 76, 
{NeYou. O«PiAs Bxeminaticn) 


A corporation is formed wkhese capital stock has no par value. 
Shares issued $31,000, assets “%f,090, liabilities $4,000. 


Prepare the journal entries to open the books. 


Ref. 46-5 
164 
















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meets need. yosotls aved eoTsis 000, soinw to gtoose Seeadee * ae a 
antoro008 -BTSHIO bees be dacie ytoont <9 tot Hieq Sis) oi L138 
edd of sovifeb ot ef godeurs © dnenestgs edd To eayew ig OF 2 + ; 
nf .tese mk 0OO_.,0O%p eatg vebiort od fads sold hqwoes ey eae 
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a'trsquoo edt ofmt feao edt ysq od List Hivode Sede 
ows yoaqamo sit ° eve yiiids niddtw ¥ wuneers 


of amrtex of et “oot "8 ee 
diag gon eso To a in to xoote 0 semede 4 


erit ot baogeot of beftel gatved giaolbaye ent 10 exeduem edt 
asaothaye ode vioitadrctaoo fanoidgibbsa tot seteuts etd. to bas 
anus OF gigas yaa yaq ot ofdans ,sotemt grt bus « ov. 
a tel 












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| evaaqmod «Ht .A ? | 
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at 0 act 
(notdandmaxd Vast A 


souls taq oa ear soore Ladiqno ha pee 
000,28) eeitifidatl .000,% oe 


.exoad ond m6¢o oF 29 


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uy 1 Laws | i 


PROBLEM NO. 77 60 
(N.Y. C.P.A. Examination) 


The Blank Company was duly organized as a corporation under 
the laws of the State of New York, for the purpose cf manufactur- 
ing and sélling a staple article, with a capital stock of 

$28,000,000 consisting of 280,000 shares of the par value of $100 
each; of the said capital $14,000,000 is preferred stock and 
O14, 000, 000 common stock. 


To further the purposes of the corporation, the property, 
business, assets and gocdwilt of certain corporations, firms and 
individuals were purchased from Brown & Jonés, bankers, at an 
agreec valuation, ‘The total appraised valuation of the proper- 
ties purchased was $24,000,000 for which the corporation was to 
pay #24,720,000, $12, 360, 000 in preferred stock and $12,360,000 
in common stock which was issued. 


Cash was received from sundry persons for subscriptions for 
10 shares of common stock, $1,000, and to provide the company 
with working capital the several vendors subscribed for preferred 
stock to the amount of $1,000,000. 


' The remainder of the stock authorized to be issued, namely, 
61,140,000 pret ferrec. and $1,139,000 common, is to be held for 
the purchase or further properties. 


Ly the terms of sale the several properties were to be 
turnee over ciear of all liabilities. To enable the vendors to 
meet this requirement and pay the amounts subscribed for working 
Ahhh Brown & Jones agreed to underwrite such an amount of | 
stock, issued in purchase, as might be required. At the last 
moment, pay So Brown & Jones were unable to carry out their 
agreement, and therefore, to save the crganization, the Blank 
Company assumed all of the underwriting agreements cf Brown & 
Jones and carried them to completion. The amount of stock thus 
acquired from Brown ¢ Jones was $2,700,000 preferred and 
$1,600,000 common, besides the amount issued them in purchase in 
excess of the appraised valuation. For the stcck so acquired the 
Blank Company issued its nutes for ©°850,000 on demand and 
#1,650,000 at one, two, three and four months. 


There was received in cash on account of subscriptions to 
working capital ©150,000, and the balance of $850,000 due on: such | 
subscription was met by the indorsement and surrender of the 
demand notes issued under the underwriting agreement. 


Following its organization the company issued bonds to the 
amount of $2,009,000, the proceeds to be used in payment of its 
underwriting notes as they maturec, and to furnish working capi- 
tal. The bonds (par value $1,000) were sold at $900 cash, with 
a bonus of 25% preferred stock and 75% common stock. From the 
underwritten stock 1,000 shares of preferred have been scid for 

164 


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\ vee 4 | 7 a hie Bey oid 
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(aoktantmaxd .A.T.0 «¥eMf) 


vebay nottatoques s es bostaagto yiub eew yraqmod xnelad ofT | 
eywiostunem to seogauq oft tot ,wroY well to odasde ont 40 ewal ocd 
%9 Moode Ladiqso s dttw ,eLottis ofqste a gatifoe Snes ant 
oOLt to osfew isq elt to eotscle 000,085 to gitte tatoo 000,000,687 
hae Aoote hertetetq ef Q00,000,if4 Latiqes Sise anit to ,o8e 
| - gxoode crommog 000,000, 51°, 


eytasqoiq ofS .molsstogtoo edt to seacgava ot teddav? of 
bra eat ,enotsetoqioo atstreo Yo Iffwhoog drs eteees ,eeonteud 
na ts ,evtoxasd ,2onol & mword moti Seesdoivg Stow eleubiy thar 
-reqorg edd to nottsulav beetatqqe fadod edt ,moltaulay Seers 
o¢ asw noltetoqios edt doltdw sot 000,000, 58 saw Seaariomsg eolt 
000 ,088,SL% bane xoote horreteig mt 000,068,98f£2 ,000, 087,58" yaq 
| P ; .beveet sew dolcly doots mommoo af 


not attottabioedue 10% enmoeteq yabmve mort bevisoet asw eso 
yreqmoo ent ehivotq ot bas 000, f%  soote nowmoo to eoutsile of 
herretetq tot hedinoedve etobaev [stoves edt Istigeses gahitow tiv 


2-000, 


vy Loman ~bouweet ed of bestroddus xoot¢e edt To tobntames eit 
so% Blan ed of ef ,moumoo 000,051, li) Sus Setieletg 000, ,0af £2 
| | ,eettreqoiq torldiwt To eestomg oct 


‘ed ot oow cottxeqonq Latevee ort efse to emted ody yl. 

ot etobaov edt efdene oT .eelsifidet! {fe to iseio t6vo SoniNs 
gnivzow tot bedinteaedve etnuoms odd yag bog toementivpst eae”? teem 
‘0 ¢nyome aa dose otlawrebeus o¢ beotge eomot & nwort ,facviqss 
geal et SA .betivpet od drfatot es ,eeaciommd mt beoueel ,xoote 
xtedt tuo vireo ot eldanw etew eertol & mword ,Toveworn ,Inemom 
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3 qword to ednomeetags sattiawrebay edz to ifs henywess yuaqaod 


audd doo¢e to diatoms aff ,mottelomoo ot meds Setitso has sent 


Aas herretetq 000,001,389 asw eanol 5 mvorl mort beaiupos 

tt sasdowwa at modt beveer tnvome ot aebtesd , momo 000,008 , £2 
edt berivpos oe Moote edt to% .motsavisv bose iniqqs sit to saeoxs 
bra breameb mo 000,008) tot eston ati Seoyeet yosarod daala 

: .ecitrom tuot bas setdt ,owd ,oto Ts .083,,L5 


ot anoltatroedve to tavosos mo deseo at bovioges esw Sad 
dove oo evb 000,088 to eonsied odt has ,000,06L) (atigso gniitow 


aft to 1abasgwe bas tagmeetohbat odd yd tom eaw moltqinoedve » 


fremetms gaittiawiebrs odt tobae Soweet eoton baameb 


ont ot ebaod Boueal yaaqnoo oddt mottasiaanto eff gotwollot 
ett to tnonysq mi bees od of ebossotg on? 000, «Se to Jnvoms 
-fgao goidaow deloiwwt of baa ,oouudam yous ee eoton aattinwrebasys 


dtiw ,tieao 0002 te bLoa otew (000,58 oxfav aeq) ebaod eff .fst 


ott mot .ovte mommoo. REV bas Noote hotieterq CES to evaod s 
sot fPfoe gead evar bewicte tq To earners 000,f Mooge mestiawiobn 
a9 Ge | et 


i 
} ‘ 
; @ 


000,£% to tnavome ot of Aoote . 









“ 


J. nol ae Z 


cash at 75, with a bonus of 25% common. 


Formulate the entries necessary to open the peeks of the com- 
pany and tc state properly the underwriting features, issuance of 
bonds, bonus, etc. 


Ref. 15-1 
PROBLEM NO. 78. 
(i.¥s. C,P.A. Examination) 


It is proposed to organize for conducting a manufacturing 
business a small corporation based on certain rights and fran- 
chises owned by one of the proposed stockhclders in the cor- 
poration, The amount of capital stock is to be $100,000. The 
owner of the rights and franchises agrees to transfer them to the 
corporation in consideration of $50,000 of the capital stock, — 
though he believes them to be worth mucn more than that ameunt. 
The remainder of the stock is to be sold to produce working 
capital. Certain capitalists are tc be approached for cash sub- 
scriptions to the capital stock, but it is uncertain what opin- 
ion they will hold concerning the enterprise, and it is desired 
to nave the stock in the treasury in such form that it can be 
sole. below par if necessary. What method would you suggest for 
acccmplishing the cdject in view? Formulate the journal entries 
for opening the corporation books. 


164 









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PROBLEM NO. 79. 63 
(N.Y. CsPeAr Examination? 


Messrs Sharp & Flat partners, engaged in manufacturing, de- 
cice to form a business corporation under the laws of New York, 
under the name of The Sharp & Flat Manufacturing Company, having 
an authorized capital of $100,000. The corpcraticn, in consider- 
avion, of the. entire issue of capital: steck, purchased all of the 
assets and assumed all of the liabilities of the partnership as 
shown by the following balance sheet dated May 31, 1900. Sharp 
& Plat take all the stock except five shares, par value $100 each, 
issued tc incorperators for cash subscripticns, 


BALANCE SHEET - MAY 31, 1900 
ASSETS 


PLS Brie ine eee Vue ecm cs ues sien sss cs ce Ee. PolwlOD 
DEG Omran DOT TNVGHUCOL Ys ccc elen st cece ke aes gee wl mee» yes don 
FCC E Uae GCC L UROL sis 6 Gable cp ences nc 6 6 0 0 eee as 5 cereryrikt 
I era iL Ue slats “eee ice ayn) «dao owes one ata ean eleeee Mian eum 1,500 
POT ais SEAN Gla, & ROI ae Bivie 4h ad emieve oye) 00'e Kd Bae gL MoE Ale cca © ep eet. 


Moyen: we ial els & ath yim wide holes 6 8 a 6 & 0s bala eS 6 $85 , 000 
LIABILITIES 


ees re EY AL gue. ts 40d, 6 4.5 ew 6.016 9.6 6 ore Kole bo 09h eRe 01) Oey OOO 
Rs 0 ae oo oi om ook a9.d'e vie 6 o's voo's ai nie we se eniate ls we unl Olly OWU 
POOGU iw PATA LS 6 use ash elk Oo e's oe RR ew, + ce os 8 lee ae MRE SO 8 6 2,200 
eek ie we einln go on die beh O18 0 4S we ba oe bres oul oe Wa Wels 700 
WAPOS CUS BNO UNPAL Gees sec ee esaresvarerecseseneedesuves 200 


Total aes eee Cae Ee caved ace hoa ee Pid BOA eh eleke web erate $85 , 000 


During the first year of the corporation's existence, the 
books were kept in the same manner as during the partnership. 
Soon after the end cf the first fiscal year however a certified 
public accountant was presented with the fcllowing trial balance 
showing tne condition cf the books May 31, 1901, and was requested 
to open a new set of books for the corporation, covering the 
operations of the business during the past year and to prepare 
therefrom an inccme and profit and less account and balance sheet. 


TRIAL BALANCE + MAY $1, i901 


Sire aig a da yb yle'w& vies oo sea ee Glenn se was ea ae» BOO 
Be a ig oe Gin sla's, 9.0% wa 40m Palen ee eats «ke acka aw ace 06,000 
PLC eRe MOLY sy pes es oe dase sore ab ew meat Ore sO 
Stock on hand per inventory May 31, 1900.... 20,8525 
Le cae ee wee ole a IN 0 Wo 8s © alee e+ mew aneye Tin dee 151,405 
Purchases: materials and supplics.:sscessess 46,000 

164 
























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s3YOY wel to eawel eft toh: moltetogqroo pay 
gitved .ymaqmod paftwtostvasl telf 2 ras ecT to sia 
“rob ieneo mi .mottetoq1os sf .000,00L8 to. Laedtiqao ; } 
ait To Ifa Heerioiwd .doods Latiqad. to oueel Fee 
en gifleteniueq eit to esitiitdsil£l edt to fis Senusee. 
qtedia .OOCL ,fo ys betab doode oonsled, antwollo? « 
i989 OOL4 ostav tec ,zotsde svit tqeoxe yoote orld {fa | 
eanolegitoedye esd tot xodenomnoot al 


coer .fé YAM + Tide g0UAIAa | 
| 20S Bad ae a Nese ale : 







O00 cbs Wb ses «2. <nkbeddind Sade inane ioe bere | &. : 
esc, OS Heese sscuevdardedie wae viele e's ee meRTONne 70g Baad so xoose 
Oct, “og SK a's & 90 6 0 & ahetn. Whee ie oe eb oth ere eee ees OLday looot atrndook 
008, f Evite occ ewan vie os we bide bislelb’> kien wikia nema ain fries elf 


E38 Se eee : 
900 28% Cettesevereseverereewetseveeeneense@ ORR ogot 
SHITIIIGAIL Fh 


008 , S84 bcs 0 ance Walgidlp ddl Aap hala ine alkane igure 
006. ot $4 > 5 0 > 0 wiki k 68's ain lela S oe Oe iia eee a sa a! tel® 
0aS.8- Chor see ese awereaereevrngersvengseee ces OLORVSE etrso0oA a) 
OOF ° wo 000 whine 4 (hank seb 8 Wy po ani Akad al ga elfta 


oes ‘ trreremeegeverscreccussensensenes esis Sas 95 Bega 


00 , 883 noes dkiepieve eae aaehwkak Caames eee LatoT - 


edt ,eomedetxe e'notststoqtoo elt to unex teal? ont sate vu 
—qGinevenireg edd antauh 28 terntem omega odd at squat ster ae: 
boittizeo 2 seveword seoy L[eoelt tart? ext to bane ody neste moog 
eonsisd Lalas gaiwollot sit tiw betneesiq eaw dnatayooo8 ohiduqg 
 heseoupet caw hoe ,LOeL 10 vat adood alt to soltibase ers gaiwote 
as edd sattavoo ,.nottatoqion ef¢ tot etood te joa wor 8 meqo ot 
etaqotg of Bae ta9ey tesq oct gatas aeontesd eft to amolttateqo 
_ »seote sonsisd bas tayoook eeol Sus $2 10% bra /omieré: ne mortorsds 









fO@L .£8 YAW « Som WA art e | 
008, S24... @eeaee saseotea stueetahenhgaaalaamaaat tas e'g 





005 , 8% SA wip.» £9 0 Ot 0B 40's 96 Oe re 
OOS. Vo O6.+« eos Hes ae 

nhl an +e e00OL Le [eM Mp: 

80$ féf CL eeigai 
. 00,82 See esrsen lames 


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Wt lay 


LADOP eres reece cceceeesencereeersereeereecere ch: O4, 
ee CROLL OG « 4 6 «4.0 6 eae Whe eee laisse rare as fh 
TTaveeanererpoenses....6khe. PaTenee. er ae Lee Ee es 
PIONC hse KVI2 4 oo 0 0 o's bie 6 ha ee ae eee 
Peeatunery ANG printings «eves * oe uceeue eae s 


Petree CORES « + 0 «é waren s bie le Seebeck pie ears < 4; 
BPeeCOUnGsS and al LOWaANOGR ss sce os ce Ase pinta sy oie > 


RO on a Ste MW 2, G2 6 8 alelale Sie aces a Pade eee 4, 


SRSUTONCE¢ evn cds PEC SLVAUL Races wc ca ewe ote 


Freight Ll NAS ale eee ee ie ks ark ela web aaa ee ee i> 
COT 8 SLO tae bt Reames a tale esate ws ob elas ae eee o; 


Advezx Ptising. o 2S (Sel? G78 cG 44059 «© co aeeeaoenwws a2 ere + 6 Ps 8 & eC ee 


Bills Pee 4 Vad Lewes gases ®e®oeosareceoeaeeseeeeoeeweert ess @ 6, 


Bills DEVE Guest sae vay b wldhs 6 5 shes «oi n'e 0 he Rt 


ACCOUNTS, MECELVEDLE. .. 00.2% Cod Be 4 ete 6s te 5 IO, 


ACCOUNT Sree ey 6 aise er aiafe wie oo osn eo he oo vie om eee 


peg RR A ES oh ners 6, 


S00. 


000 
400 
600 
L'75 
200 
200 
600 
175 
750 
S75 
500 
115 


anh he, 
O75 
155 


#O19, 





5° 1,200 


$219,155 


Draft the opening journal entries necessary to give effect 
to the above, prepare an income and profit and loss account and 


a balance sheet as at May 31, 1901. 


Write off (a) depreciation 5% on plant and machinery, (b) 
unexpired insurance $75, (c) bad debts, (d) inventory stock on 


hand May 31, 1901, $19,605. 


Ref, L4—1 























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SOL 


PROBLEM NO. 80. G4 
(American Institute of Accountants, Examinations) 


The following is the balance sheet of the A. B. Company, 
January 1, 1915: 


ASSETS 
Cash . hoe “ - $52,864.00 
Accounts Receivable. ° . 197,425.00 
Inventories. ‘ . . ; : 

Raw Material . : . ° . - 84,268.00 

Finished Gocds or ae ° + Sogou. 00 

Office Furniture and Fixtures . ey  —500.00 

Land ‘ . . ‘ . ° . ~ 180,000.00 

Buildings , . . ‘ . ° - 150,000.00 

Machinery . . . . ‘ . ~200, 000,00 

%053,654,00 

LIABILITIES 

Accounts Payable : . © 35,482.00 
Dividends Payable - Preferred Stock 2/1/15 7,500.00 
Dividends Payable - Common Stock, 2/1/15 10,000.00 
Mortgage Bonds- 20 Years 6%, dated Jan.1,'15 100,000.00 
Premium on Bonds . . . ‘ 5,000.00 
Capital Stock - preferred : ° . 250,000.00 - 
Capital Stcck - Common . ‘ y ‘ ° 500,000.00 
Peserve for Bad Debts . ’ . * ; 4,718.00 
Burpius . Panay . ° ‘ ‘ ° 40,954.00 
$905,054.00 


The transactions for year ending January 1, 1916, have been 
as follows:- 


Cash Received from Customers. : : » #793,502<00 
Rent Received ,. ° 600.00 
Purchased 1,232 ,000 lbs. raw nnaterial @ 20¢ 

per 1.5 
Sales... 5 ee" SBBas Se 656 
Discounts and Allowances on Sales ‘ ; 20 ,0L9.00 
Bad Debts Written Off . we . . ° 2,143.00 


Disbursements havc been made for: 


Acccuunts Payable ; F : : « (¢ 245,356.00 
Factcry Expense ‘ ; . ‘ ‘ 7,489.00 
Factcry Labor . ° ° ° ° 551,426.00 
Factory Repairs ‘ . . . 20,045.00 
Office Expense ; ‘ e ° . 1,927.00 
Selling Expense . , . ; ° 52,914.00 
Salaries . . ° . ‘ ; . 58,471.00 
Taxes . , . ‘ ° ° , * 1 4855400 





| p | | oie Pad Ag 
"BB Pla as 08 ON MaIGORS > be 
J ay, ny! oe i 5 
Lenoidanerar’ « cadasdnssooon ‘to odutiten 
eased @ .A onls % $o0tls sonsted ott ot 3 
araeea 
00» Bae, Seq. OK: ae * 
00. GSP. rer ° aso 
OO .go8 23 . : ; : 7 ' ae 
90. see . £5 * . or. * * bode iregail wee md | 
90,008, + .  eonmdx tt brie oud aml eott 
Oo ,009 08 * a * . * ° — Set. 
00 + O00 mele o * * * e * ganrbl Oise 7 
00,Q00 OS * m7 * ‘ ” * yreniciont = : 
Feta 7 u 
is ear tLtTEAl a 
00.88 .3& e pidayed etavoook _ 
90,00¢,.7 2i\iNR. yoode porsetond ~ aidsyst ebnobivit Dee 
90.000, 01 I\L\S .Ho082 nomi = ofds rina at ebsobivid 5 
00.009. “oot aL". .. be hogab go eo tser ae “2 egentterl | 
90, 000,.¢ ’ . . no ms iuett , 
- 90.000, “pags ‘ . bovsete"s - moo 228 fetiqs? 7, 
00. 900 ,008 ‘ ° rm pi . ‘pomel = foots. fatias) b 
90.8fT.® fa tee es Me At nine _ aes evseso" a 
go 2 hee * * . . i a * auletis® : 
- goed svar ,ofet ch qrsunal pathne 189% 10% enoptosenets oft 
! 7 " erawoLlot 86 Lo a 
‘00. L0G ,EOTE ie char het most pevisooh Head . . 
90.008 . * ‘ peviooel sr0F 7 ss 
. os © aksodan ‘waded: 000% ges, f i beasnomw a ‘a 
i . Lg ee L q9q - , re ae a! -. 
00 .BSE,.SSS | x bs ieee ws 5 aokse oe. 
90 .e@£2,25 aay ae mpage rt sbonetotti Ba este 4 ae ke 
OO Obl. S$ . er ane aa vais ‘eadad bad a . ‘ i, 
| spot 9bs0 a ound adrrenise eid call 
is rie ‘ yo aa 
00 .dGb, 525 # eidays* amneek : 
00.08P. qx yiodost 
60,38, 18% 
00 Sho. 
00, TSC, 
00.2£8 86 
O0,5Ch» 








































65 


Inventories, January 1, 1916. 

Raw material, 412,596 lbs., having a market value of 22¢ per lb. 
and finished gouds, $30,842.00. The land is estimated to be 
worth $200,000.00. Semiannual dividends of 3% on preferred and 
2% on common, declared in June and December, payable August 1 
ond February 1. Reserves for depreciation of buildings 3%; 
mechinery, 5%; Office fixtures 10%. Bad and doubtful Aebto 
reserve should be 2% of accounts receivable. 


Prepare an operating statement and a balance sheet as on 


ganuary 1, 1916. 7 
164 













af aeq YS to siritae a 8 omtved 08 SLb- | 
” “ed oF bodamites et bast od? weit atts abe 

~ phertestexq mo he to ebrobivid Pyeng bet 

{ ¢ewauA eldeyeq ,redmeced bas enh ot 5 

bee eo eer o noltstoetqeb tot peutic 

dab: bertgsuch bas bad ,ROL eowwdxit 92770 | 


a 
.oLdavisoet etaooos 10 KS 9d | Luc 


— 






29 aa sora sooosind « bras taosiesate sais he fa.s 
A ape naps 







PROBLEM NO. 8l. 66 
(N72 Examination) 


senior partner A desires to retire from active business life. 
He has confidence in the ability and integrity of his partner B 
and both have a like regard for their sales manager C and their 
works manager D, whe have accumulated ccnsiderable means. In this 
situetion B propesées to Organize and to continue the business as a 
corpcration, under his executive management, and ta bring in suf- 
fictent capital from C and D in equal parts to pay cff the princi- 
pal of a real estate mortgage falling due at the end of the year, 
and sufficient capital from E, who is net connected with the 
business, to pay off the principal of the firm's notes payable. 
It is contemrmpleted that EH shall be made the treasurer of the cor- 
poration anc thet the five parties shall be the incorporators and 
constitute the first board of directors. 


In the discussion between A and B it is agreed that the net 
worth of the business, exclusive of the gcod will which has never 
been represented on the books, shall be converted into preferred 
stock cf the corporation and that the good will shall be valued 
at one-nalf the net worth and be converted into common stock; also 
that the cash capital contributed by C, D and E shall be paid to 
the firm, used by it for the purposes proposed by B and converted 
inte prerverred stock for account of the three parties respectively. 
Thereupon A orcposes and agrees to surrender one-fourth of his 
snare of the commen stock on the condition that it shall be dis- 
trivuted as foilows: two parts to C, two parts to D and one part 
to E. 


These matters are all covered by written agreement of the 
five parties, in which agreement it is provided that A dnd B shall 
convey to the corporation all the property, business and gcocd 
will of their copartnership, and that all the transactions and 
stock distributions provided for shall be carried through and be 
closed cut in the books of the copartnership, including tne sum 
of $5,000, which shall be advanced to the incorporators to pay 
fully their subscripticns for 10 shares each cf the commen stock 
of the corpcration. 


A certified public accountant is engaged to make an examina- 
tion of the books and acccunts at the close of the year just ap- 
proaching, to procure aporaisements of the property and to close 
the books after providing therein for his compensation. On the 
completion cof his work the bocks show the following conditicn: 


ASSETS 


hg ip er ee A ee ee ee ee a ee 6 50,000 

Bul ldings eee ° eseeseeomeewvegesteeestvwoeeeeeeveeseeeeeoexwret eo @ 200, 000 

Machinery, etc eee? 4 *¢eweeeszvaeece~e¢gt@Qeae@teseee Dee eete @ 100, 000 
164 




































3 ri +. 
8a 8 .OW MaLaOHT 


(roksantoaxd AcGeD a ee 


,otil eeontand avidom mort eriset ot eotisoh A temsied | 
@ wentaeq eld to ytixnetat Ona yeifids edt al sonebl it 
axtedt Saas 2 rogsaam colese tledd 10% byagot oll s evecd 

aidd al .ensom oldstobienco batelymsoos eved onw ,7 tegsnem 

8 ee geontend oft oumistaoo o¢ Das osinsg 10 of eseoqoiq 4 aolidauyie 

etue at aniad of bas ,tnomegenam ov lIuooXKo elit soba .aotteiogtos 

stontaq eit Tio yaq oF atusq Lape at 2d Soa 0 mott fadiqapa tnefott n a 

.mey edt to Sne elt te auh gntiisl epsatiom evades fsex s to leq . aa 
adt déiw Setoennoo tom ek odw .a motl {stigso cnefettice Par : 
,eldeyeq eeton e'mrtt edt To faqtoning srs tto yed of ,peerienud 
soo oft to sorwesert ot obam od fiere < saxtd hetsliquesaoo el st 
fas exoverogtoons edt. od Iles eolsisg evit edt tant Sas not oatog _) 
etotoerra to Sisod deat? ens ett igenos ue 





ton oft teadd bootge et tt @ bas A noewted soleayoelh ands ke ee 
nxovoa aed soidw iffw boos ent to oviawtlone ~eeontend edd to astow Re a 
hertetetg otmi botirevaoo ed LLnca 2xo0d eft ao botneeetcet goed, 3 
boulav od Iferle [{ftw boos ene tad? baa mottatogtoo edt to xo90sa 
onfe :xoote mommdo odal bedrovmoo sd Das dtyow jen sft tiss-ono ta 
ot bisq ed {Iecde A bas d ,D yd bosudiisaos fasiqad deso old gerd 
ho¢xernos Baa & vd boecqota aesogiug edt 107 $E yd bees .orlt od 
xviovitooqeet coitisq setns eft To gmyooos got soote Sexrete ng odnl- 
atd to Atxvotesano tebesttvse oF gootas bres geeoqotc A moquotont 
weeth ad ILane #t tedt mottibaoo edt ao aoose aommoe ent Lo ofere 
tesa omo bas d ot etsaq owed ,9 oF etusg owt rewoliet aa betes 

. “ho ‘ aan 08 


edt to ¢nomeetgs nettiaw yd berevoo ifs ots etettan seerlT | 

{fore & bab A tedd bebivor at tL snemeetge dotdw at ,tetieaq evit 

Soon Das seenteud ,ysisqotg edt Ifa aoliatogio? els of yevrroo 

bas enottosenett oct {fn tant bas ,qtdetentisqoo trod? to L[iiw 

ed bas devorwlt belsiso ed ifsde tot bebivotgq enoltuchisalb Moote 
nue sft pathufont ,.qidereatxsqoo ect To exood/ ods af duo begols . 
yeq of etotatogtoont ond o¢ beomevhs od Ilacte “otsw .Q00,8$ to - 

Noote gomuoo edd to dose eotade OL tot snoitqicoedwe akens yiint 

| * moitatiqioo sit to 

: jos 

esainaxe ms exam o¢ hernsegao eat Inseimitoola oktfdyq bettisgaso A ) 
“qn test iney ot to eeofo end ta etruoas bas exood act to molt 
9e0fo.o¢ bas yireaotq edt to etnomeatistons emsoorq ot .ghnidorotq — 
anid a0 .mordscnoqmoo atd aot ateteds gnibivoerg T9s%s exood odd = 


etaega " ON a i p ae a ; 
; ; rn ; ) Peat iy, = 
000,08 % eevee ewreeere peweeneeraeeaene eevee sees eee - Dr aa 
900, 00S cee eee e renee ew eneeaeeneee seeevecesene fal ae LI 
000 ,00L£ Ce ee eee eoeee eee ee ote 4 prs fio ie 


~ 4 
: { a tu , 
ra OS A — DAY 


: ma ; 
a a ed ee 
e id SO et de: 7 he = 5 ty Uj ee 


Finished product, 


product in precess, materials 


and BiPplLS sy. es ea eb a ES Eu eee. $150,000 


NOCER PeECOLVOULCc.c ev ewewneecl is 


Accounts receivable. eoenmperoeoesees eo 5S 2e & 


3 
(IO Py Sa ee ee ee ek kc ao ee 


Real 


‘Notes paya 
. Accrveda 


"otal BSSCCES ou cae oe ees ae 


° 


e¢een2oee: 


oagee 


L oe oe ie 


es 
e 


e 


@@@#¢64o 


eeoe#g: 


- @#@e 09 6 


eecepeoeoeeeeeoeges 


LIABILITIES AND CAPITAL 


SStALS MCPCPeaees pace wees anaes sas 88 
Accrued invercst on real estate mortgage..... 


ble on COMSNnOR th es th abe eau ba OPES 
LNiCGrcen cm Hotes” Payable... .+sces eee 


Actounts Eve ewes et aoe eae 86s > ek 6 ke 2 Ew OS 


Aecruead paps ol aE ee rere oe we 
De ae provisicn for unccollectable accounts.. 
ae ko co cary eae ae 


100,000 
100, 000 


100,000 


» $100,000 


e 


ce 


seseeenwpeeseeensree8 &€ ee 6 


WG Been conan eaten Ce CEST o Ee iets eee 


- Ref. 


2,500 
50,000 
1,000 
25,000 
6,500 
15,000 
400,000 


200,000 


67 


3800 ,, 000 - 


Total liabilities and Capitalesssseeeee+ «800,000. 000_ 


Prepare cash book and journal entries to be placed on the 
books of the copartnership te represent properly thereon the 

carrying cut of all the matters provided for in the agreement of 

the five parties and to close gaid bocks. 


2On4 


164 


LA ‘17s ‘Or Atle Se 
. 5 a os 
my iy Ph Are a 
v 1. 5 
4 x; Wh 
: 
| ‘ , tah 
j “ : 
r el Mey. A} ‘ 
‘ ; 
q 
“ 
“hi 



















{ Se Kine d ai 
Pe: a, Fin Raak on 2 “el 
Sere ti 

ee 2 19.9 Seme a el a See 
. . My ey ey Ar 5 ae abs: 
Se RR Pi 








: es. 4 
oe vere aedQagertom otaseo. Ester | 
900,0¢ cena neem eeebenesenw eee” B: eens 
Ce re i) 4) aotoa tio $20 
‘ 000,68 sn enpevsreneosntoeanpareer: 000d 
a 002.0 ee ee re seeeees! 


000,61 ..ed¢noose sldetootivony nol fotetvo 
900,00 3) apes sa eae Rane Scien 


‘ G90, S08 “1991 eng ONS «9 2 ete era 
* ry 


a ; ey seals rae a 
200008) <erere rene egtotiqaa bas aot: | eee V4 Se : 
























oft ag hooeig od of eetatné Lenuvot Bas ood dens 2 
+ ote Moexo nt bh ct TOnTIAqoo 
to dooms: nA od? gt. to vo Fo Nt Lfe to 
ee eaacsiti ahh geod 9 a8 bre eotd 
Salthy 7 | a ii: 
aa. hii eet) i 
er RK bart as be Ri bat cr 
1; qe Oe * } wit 2 a: Laer ese 


| a i . ened . oi , sa Ge 
rN yi ee Mee eae 
Pe ae iy (th Ameer a ~ pas yi 
j ¢ ae wd ee 4 hee 7) ea LAND Lv ae 
| Rta ae es a 
0% ev ae, Sara 


tt i ee teh A “ae - 


ae 
se 
as 


hes oY : 4 
ee oh Gs 


PROBLEM NO. 82. 68 
(N.Y. C.P.A. Examination) 


The patent Specialty Company was crganized July 1, 1907, 
with & capital of $100,000.00, to manufacture novelties. The 
following £idn dactrens occurred: 


July 1, 1907, one-half of capital stock was subscribed and 
issued, 10% being called and paid on that date in cash. Legal 
end other Sncorperaticn expenses, amounting to 500,00, were 
paid. 


: pugust 20, 1907, patent, covering novelty, was' purchased 

for $50,000, 00, payable one half in stock and one-half in cash; 
the stock was issved and delivered, $2, Vs 00 paid in cash and 
note given for balance due in one month, 6% interest. The patent 
was subject tc royalty rights, granted tc the Novelty Company, 
which terminated at date of purchase. All accrued royalties were 
to pass with patent and no royalty rights were granted by the 
Patent Specialty Company. 


August 27, 1907, the Village Board of Trade donated a lot, 
valued at $5, 000. OO, in consideraticn of agreement to erect and 
equip a plant at cost of not less than $25,000.00. 


September 13, 1907, a further call of 70% was paid. The 
note was paid at maturity. 


December 31, 1907, the following facts existed: 


Payments on account of salaries, interest, insurance, etc, 
amounted to, $2,250.00, with $250.00 accrued: contracts for con- 
struction and equipment amounting to $35,000.00 had been given, 
which were 75% completed and 407, paic: royalties amounting to 
$2,725.00 had been received and {£190.00 was accrued. 


Prepare journal entries to ccver foregoing and statement 
to display financial condition at December 31, 190%. 


164 





(ctoltsaimexG .A.T.0 | 





YOOr .f yist bosinsagio esw Yueqsod eetatel 1a tn ned ont 
edt ,retsfLevon euvstos'twasm ot .00,000,00L¢ etices a cttw 
:beriw990 anotte 





estas! gatwollo? 





bea Bedktoetve caw Hoote Latiase to tisd-eno t0er. j 
fagel .deso al steh tedt ao bieq bas Sef{so sated xOl aes 
axsw 00, 008) ot snitqwome ,2eemeqxe ae vray oo 
iy” 6 eBbhaq 

is ‘ Td 
boesriomea eaw ,yilevor gaitswod ~tnedeaq (roel .Os sevgva | 
‘dees mt theneeno Aas Moode at tad eno eldevsq .00.000,085 4o8 
His eso mi Bisa 00,000.89 ,betewifeb bus Sbeveel eew aoote ons 
dneisq off .tesustai 86 aid trom eno at eub sousisd aot nevig ston 
wasqmod ytlevol edt ot Bedastgy ,etdgia yvilevyot of toeldue eav 
S190 soidlevot beyroos {fA .sesnouwsg to sveab ta dDetanione?s siolnw 
ett yd botas3a stow etdnin yiisyor om base ent dgiw eaeq of . 
“YABGHOO sisioeqe seekal 


.toL & Betanob shsatT to braod opsiitv ede ,VOeL 
hae deere of sronts etm to anoktatebienod af Goneto 8s hart heobeuka 
00,000,682 mart ezol som to taco Sa nate & ciups 


eit .bieq eaw ROY to ff{so reddit a ORL ef nedmetqad 
ytiuvusem Is bieq eaw aton 


(bate txe etoe? antwolfot ont ,TOCL .1% tedmesed 


.9%o ,S9nstwent ,.teoretat weoinslss to ¢tnooos mo adgemysd 


“09 tot etoatinos. :boutoos 00,0883 dtiw .00.088,.S) ,oFt bosteavomes s 


wievig seed bad 00.000,2&% ot antinwome Jnemaiups bas noltouate 
ot a ina « noitiayvor ‘bieq x08 bas ‘Sasetaue Ray et uaa s? 
bestoos saw 00.0@L) Sas beviese1 ased bad Wr | 


tnomsteata bas anioge1ot tevoo oF esiaine Lactwot etac 
-TOR@L ,f% tedmeced ta molsibaos Latonant® ganged ot 


a b-08 otel 





Sol 


ROBLEM NO. 835, 69 
(N.Y. C.P.A. Examination) 


The trial balance of a corporaticn shows Dec. S51, 1898, a 
credit to capital stock account cf $74,176. The authorized 
capital of the company is 150,000.” There is $50,000 stock in the 
treasury of the company. These figures in the trial balance were 
cccasicned by the fact that the bookkeeper, not understanding 
corperation bookkeeping, had charged the capital stock account 
with losses as follows: For year 1894, $13,884.50; 1895, $9,897.50;. 
1896, (332,507.50; and credited it with gains as follows: 1897, 

G4, 319. 15; 1898, (26,146.35. Make the necessary entries to adjust 
the books sc as te show the true condition Dec. 31, 1898, and 
give a clear ant concise explanation. 


Ref. 6=2 


PROBLEM NO. 64, 
(N.Y. C.P.A. Examination) 


A syndicate, formed for the purpose of acquiring controlling 
BBL OTe Obs in several manufacturing ae api = had pocled the sum 
of $1,200,000, and the securities purchased therewith had been 
placed in the hands of a trustee. 


A company was organized with a subscribed capital of $5,000,- 
000, (shares 2360 each) of which $2,000 was paid in cash. 


By the terms of an agreement entered intc between the company 
and the trustee, 49,9380 shares of stock were to be issued to him 
for all the securities held by him, and $624, 375 in cash was to 
be paid by him to the company, provision being made, however, 
that in case the trustee failed to pay the required amount of 
cash, he was to turn back to the company 3-1/5 shares of stock for 
each $100 that he failed to pay. 


The trustee being unable to pay any cash, returned stock in 
lieu thereof, as provided. 


The company then cffered the members of the syndicate $3,000 
in securities at par, and 25 shares of stock for each $3,000 con- 
tributed to. a second pocl of $1,200,000, This cffer was accepted 

and half cof the second pool paid in, securities and stock being 
issued as agreed. 


Make entries for the books of the company which will give 
proper expression to the foregoing transactions. Prepare a balance 
sheet. 


Ref. 10-6 
| 164 






ga 












































é (moitsaimsxd 1.4.9.9 .¥.) 7 
; 8 .8°C8L .L& .o90 awone aottetoqioa 8 to afed f£ Ett SAT cf 
; bestrodius off .a0 319 Yo Inuooss woote f Pr ot Siena 
edt mk doote 000.083 el. oredT #000 ,.08f3 et ree 7 109 Ori,  % Lations a 
. ovow sonelad Isitt oct mt souwgtt saedT: .yasono ) eft Io ytuesort 
i. atibisterebas ton ,rsqeexskood ect tect dost od: t rd Seq | 

) dosoo008 Moote Lat¢iqss ont Segteio bad .aatasexdood 
— DE.%8 0; 2CCBL (08.888 ,EL4 SC6L 10%. rawol oF 88 @ > 
: ,TebL rawollot es attisg dtiw tt besisers Se 302. WOE.SE. .2 

teuihs of setitne yiseessen actt oxlaM «SS.0Sf,08) ~8CBE aL 


Sas ,626L .f& ,00d aoltibmoo suett ocd worle ot e8 08 
«Mostsnslgqxs catonos Sag elo | 





$8 .OR MBISORG 
| ; | (aoivaniqexd oAsTE.3 .¥.H) 


gaifllottmos ynittupos to Seoqiwg edt Ol Henrtot .etsotbaye a 

me Ot Beloog hs ,esinsqmos gnitwtostunen [sievse mt eseotetnt 
190d bad Atiwerert beeedowwg eottiayose edt bas 2.000 ,GO8,.L£3 Yo 
: -ooseuts @ lo ebmad edt mt ie 


~,000,82 to fatiqes bedinrcedva 2 Atiw bestas o 2aw moo A 
-Maeo mt biaq esw 000.8? doldw to (fo: COLE eotadde) .000 


Yaaqmos eds neewsed otal Hoetesns Jismostgs ms lo amet oft yg 
aid ot Beseal ed ot stow woods to eonece 060,93  ssoteunt Sana 
ot eaw peso at ave «PS5G bos ymin yd blod esitityooe edd {fa sot 
»tSvewod ,ehaem anied motelivorq svsqaos edt ot min yd blag od 
10 towome betiuper add veq ot DSeltst osteuxt oF sean nt sacs 
Tol AHoote Yo getede G\Lad yaaqmos eds at Aosd att oF asw on yileso 
evsq oft Sollst ed ¢add OOLS cloze 


at Moose homiudted .feso yas yeq ot eldant nated seteuts onT 
; | sbebivorg es ,.tooreds vetl 


 +000,87 steotbaye ent to etedmem sit betetto medit Yasqmoo oxiT 
“109 O0O,.84 close tot waote Yo estare CS base .teq ts eettixvose At 
Hetqeooe esw tetto ein? +000,008,.£° to Lo. Hbrosee a2 ot Bostudiat — 
anied Noove bas eeksttasrooe gat bieq Loog 92 ant To ilsd bas — 
| . _  ---hee1gs es boxest 
Svia ILiw dotcw yesqmoo ett to exood edt tot eeiatns efem 
-sonsisd s etagetT entottosansit yntozedie? ecit ot noteesigqxe qoiq 


“Mii el 
; y ie 





PROBLEM. NO. 85. | 70 
(N.Y. O¢PVAy Beaiinevion 


Three brothers, A, B and C, own all the capital stock (each 
1/3) of a certain corporation X. They own also but not equally, 
55% of the capital stock of a kindred corporation Y which is 
capitalized for $100,000, the par value of the shares being $10. 
The holdings of each in the Y corporation are as follows: 


A 2e2e shares 
B 2226 v 
C 1056 ‘ 


The three brothers, acting as the corporation X, purchase 
out of corporate funds the remaining 45% interest in the corpor- 
ation Y, paying $100,000 therefor. Without further cost to X 
they now wish tc merge the two corporations under the corporate 
namé X and to dissolve has 

C propcses to make compensation to A and B individually for 
an hg \ interest in the 5500 shares upon the same basis as the 
45% interest was acquired, so that all may share equally in the 
“merged properties. . 


How much should © pay to each of the other stockholders? 
Outline the entries necessary to record all the above stated 
transactions on the bocks cf X and Y. 


Ref. 16-1 
164 







































| Se ARB, 
ha as ¥ 7 sy 4 “oe by 
i? - . fees (ay oa oe 
OF PN " ee” 2cBy 0% i 6 ani y dd 
) ane (no 1eattoea a0 0a | 
; iglesia % 
dose) 3 ape ides edt Ife ‘wor \Dbaa @ re eGo 
evilavas ton dud oats xwo yes? .X mottatoc $oig ifsts, 
et Hotdw ¥ motsersa10 Soabriet a ‘do wood 
-O£3 (BB. 9d eotsda oct to onlay. mag edd Ppa 
- raed fod a8 958 a ¥ pains hase 
2 ba e, > Cap ge 
: ae 
eeaiotidq xX nottetaq4oo OF aa piitos steeoan 99 
_ stogtos ons at teorstnt Fah wAidtage: old ebay shatocuen © 
ay K Of 3809 tortrst tyocdst hy eMI29TOAF O00,00L) xelysq Yt _ 
 - «MWatogios edt tobnay enottstoqtus Ww “odd sytem of datw wor Kegichised a 
; ids © aaa cal sh a eviceets ot ban X ahi , 
tot vltanbivtbnt G baa A ot i a pre getseey, lead a at ” 4 
oit as ehesd omee aft noquy geteda 0082 Lee ni tat. A. ‘a | 
ed? at witeupe onade yaoi ffs. tedz oe a . proeeers Nad 
PatobLortiovte xanto ert to dono o¢ yen a) penny 
betase evada edt Lis bro0e7 o¢ ytagedden a 
_«¥ Sma X to alvod one mo en, 
NC Ma: 2 NK ar oth wr 
ha j nh , | a % TEN 7 ; ” 
i ; sah (ie és 4 
ry a hacen e 
its eae ioe: det 
iw 5 
a OF ‘ de 
bin Ae Ca f. 
. 


PROBLEM NO. 86. tL 
(NY. Oe Ps Rie Examination) 


The balance sheet of a corporation having a capital stock of 
$500 ,000 and 6% certificates (not bonds) to the amount of 
138,400 outstanding, shows Dec.31, 1903, an impairment of capital 
of $125,000. Interest on the certificates has been paid to 
November 10, 1903..At the closing of the books allowances were 
stated and entry was made in Certificate Interest Account for 
pi, 155.53, interest accrued to date of closing, In April, 1904, 
it became expedient that these certificates should be gratuitous= 
ly surrendered to the company and retired as liability, as of 
Dec. 31, 1903. A stockholder, D, owning $250,000 of the 300,000 
shares of stock and $64,400 of the certificates, offers to give 
the other certificate holders dollar for dollar of stock of his 
own holdings for their certificates, and further offers to donate 
back to the company the certifcates thus acquired, together with 
his own, so that the impairment of capital will be removed. The 
‘interest from Jan 1 to May 10, 1904 ($2,998.67), is to be paid by 
notes of the company but not to appear as interest on certificates, 
for the reason that the certificates are assumed to have been 
retired Dec. S51, 1905. The offer is accepted and A, B and C 
surrender certificates to D who gives them stock therefor. The 
‘company gives two notes each to A, B and C and D, one for interest 
Nove. 10 to Dec. SL, L00S;.thevotber for interest. Jan. 1 to May 10, 
1904. D thereupon surrenders the certificates for cancellation. 
The certificate holders! accounts are as follows: 


Amount Ctfs. Int. Acerved to Ene ss. cane i. to 


held Dee. 31/03 May 10/04 
ee ee a 8 B00G00 anni cay O6y68 ney Bn 7SeSs 
Rane Cee reero eT Sy O00 LUC 250.00 650.00 
Cyeerarecacsee 56,000.00 500400 780.00 
eee he hee ea nt z 64,400.00 536.66 1,595,34 

: $138,400.00 $ 1,153.33 42,998.67 


Suggest a method of recording this transaction so that the 
notes given for interest on certificates Jan. 1 to May 10, 1904 
shall not appear as being given for interest. Make entries for 
all interest paid, for the certificates surrendered and for the 
rehabilitation of the capital account. Show also the condition 
of the deficit account. 


Ref.16-2. 


164 


a) 08 ,OM MaIGORT | 
{nots antonnxt oA 7 ev oX¥ Kt) a, 


t0' Hoote Ladtoso 8 gnived sobtstoqtes 8 to toede sonstac bs 
to tovome of? ot (abmod tom) eeteottities qe bas 0 0.00% 











fadtqsa to drontitcamt ma ,cOCL .Llé.907 awode yantomass 005, 46L 
of blag moed anit cotsotitides oft ao teotetal (eOOO,esle to 

e19W aeomawolis evood ed¢ to gnteelo orft tA. .cORI (Of sednevot 

NOT grnvoooA teoretel stsoktisasd al ebam esw yittae Dae bovave 
—bO0CL ,[itqA mt .antcolo to etsbh oF hostoos Jaototal S61, f 
easotiutatz, od bilvoce sotaottit@qen seers tad? tnekbeqxs emaosd ¢ 


to an .utiitdarl! ea berttoey. baa yeaqroo att of betebmetive YL: 
000,008 eit to 000.0888 gatawo .d ,veblodifoote A  .eO0CL .f .o0d 
ovig of etotto ,eetaottitres eft to 005,.56¢ bas foote To Boterle 
el: to asote to isllob stot arellLob exedblod etaoltisues wento snd 
etanoh ot eretio rtodtrwt Bose ,pedsef titres afons tot eantSlod mwo 
dttw vedtesos .beitupor aut setsotisxeo edd yasamoo sat oF Wosd 
ect?  -.hevomox od [ftv [aticso to tremtisamt easy Jars o8 . nwo ete 
yd bisa ed of et .(%8.890,Se) BOCL ,OL yaw ot £ mel mort teorstal 
2ecsolttines no dectstnt es tseqqs of Jom Jud yaagniog oy To eeton 
moed evan of Sowers ore sotasotiisned edd tad? aorset ods tot 

9 bas @ .A bas betqesos at tetto ed? .e0el ,fc soed Sertset 

oif ,%otertedt xoote ment eevig odw @ of goveotiigiss tebnetive 
gesistal.tot eno ,72 bas 0 bas &@ ,A- ot dose eeteon ows covia YAsqmoo 
,OL ya of £ .met tesrstnt tot tadto eit ,CORL ghe .oe0 oF OL vou 
stotsa{feonso tot setsotttireo eft esebasaive moquetess C@ ,b0eL 
sewolfot es ota etnuooos 'ayebLont ssastityiteg anit 


od £ .aeG «tnt od SeruntoodA: . tel -ett9o JdovomA 


SO\OL ysil . SO\L% .90d  bfLert | 
eevee &  —° > Wade. } . C000 eS J... cuvcesenee 
00.086 00.088 00,000, 0 eoeveceeenseugel 
00.087 00 ,00€ 00,000 ,d6 Pervert ys, 
bE.oOE Lf 08,822 00,005, 39 a a “9 see «4 


3,800 ,S¢ SSSSt ft @ 00.004, 8E1E 





adit tett om mottoseaetd eidt antbt0se% to Ronident £ dusqane : 
vin aeton 


BOC. .Of yall of £ .mat eotaotiitaes mo teeisdnk aot mov 
rot eskiins steM .teotedat.cot movin nated ea tesqas don [Lorde 
edd tot bis botebnetwtwe setaoitisseo edd sot ,bieg teotetot Life 
ftoktihros et oefe woke  .tawosos Iatiqes oft te motiattitdadet 
. | | -.,tawooos tiotteh eat to 





hol 





.8-3f.208 





& 


PROBLEM NO. 87. 72 
(N.Y. C.PCA. Examination) 


A railroad company has the following capitalization: 
Shares 

Capital stock outstanding (par value $100) 92,438 
Capital stock issued and in tréeasury...... 6,459 
CADI EAL STOCK Umea auOd, os ic ca RAE ee elbael. bg Loo 


Total ODT 20s ee aca aac! O00 


The directors declare a dividend cf 10% Aare Sees in the stock 
of the corpcration and the resclution authorizes the officers of 
the company to use the treasury stock and unissued stock for that 
purpose and directs them to purchase on the open market as much 
more stock as may be required for distribution. How much stock 
must be purchased for this purpose so that when the distribution 
is completed all the stock shall be cutstanding and none shall 
remain in the treasury? Scrip is to be issued for fractional 
parts of a share. 


Ref, 24-4 
PROBLEM NO. 88. 
(Nada... Ge Pele. Examination, 


The American Manuracturing Company, on Janurry 1, 1909, 
placed in service a piece of machinery which would _Aopreciate, 
according to its chief engineer, at the rate of 15% per annum. 
The criginal cost of this machinery was $84,000 and the board 
of directors agree to set aside annually a sinking fund which, 
together with the interest thereon, will amount to the original 
cost at the end of the prospective life of the machinery. This. 
sinking fund is to be deposited with a trust company on December _ 
31 of each year and a curresponding amount at the end of the last 
partial year of the life of the machinery; interest is to be 
credited by the trust company at each of these dates at the rate 
of 4% per annum. Show how the amount of the annual sinking 
fund payment may be arrived at and prepare a detailed statement 
for the board of directors, proving that the amount so cbtained 
is correct. 


Ref. 50-1 
164 


: Lote rr (00L$ owtoy ate aeikasdenes pe iy Sa ee 
“ OBALS coveesVIVESOSS Al bos Soueest Hoote fastqsd | 
-CSiet tereer esses eesend sre DONRG Lets: Moode Faa1qad 





a 
Pa 


20090 eee sees sas bmaniti9 Loto? - ‘ "he rs 


ined ont at eidaysg Of to haobiv ih. a otel905 enodoothh ent 
to ereottto ont cox isoddius KoLislowes edt pers nottawgioo edt a6 
tens Tol woode S5ovreeinay bas doode . ty + od sas ot yoeqeiog ent’ 
owt 3° toaltan: meqo ods moO seedo-gete “ad medd stooxth bas 9a0q ive 
Hoote om woH .cottudirte lh ot. e% od yeu er wo0da. Eh verul 
noliudixvgerb ont aorhe tadt oe seoqung afdt tot Seeannoing ni 
{farce enon Sac vatiastetuo ad {isthe woute nnd fia Derek 
fenottoaat ~ol Seveek ed of af ind | | 










(no tdsatiosxt As 7.0 Feit) loan 


~20CL yl viavant ao eYeingmod antautos wach pean edt 
cOSslverqoh Slow dotdw yrontdoam to sootq 2 9otvace mk beoeta 
WIKs teq “dL to ot¢aat add te ,toentgns Tetde ett ot gebbros 
t8OE 615 Hrs 000,283 few yionidoam 8ied to geoo Lenk dred out 
1 tetw Hest yablete S Yflavans efbles tee ot Comge atosoe 20 
Es nittodtos ‘eds ot Savoma [fiw .moortedt sestotal. ont fitiw tesitegod 
cil stentsdoam ent Yo etl evitoeqeorg ond to bao Rast ae tess 
ISsdm5960 MO yraqmoo geunt g itiw Setkeogebh ed it (at & Narre 
teael ott to Bae ont ta towome sniboogeerins a 
OG ot ef Seetednt {ytentsonm eft to stil ers 
Stat oft ts asteb eesadt to tlose ts yeaqmos tan 
acivnte Lasans oft to tayoms eft wort wore | 
tosmetste hettadsh gs Otago bas te bevinta 
Honttatds oe Javons ents: tasks 7 Se 










eh 
hiss ie paseed . male 
Ai urs ng. i f 


; 
ij 
; : Ne it yy 
. hia owe by St ame 
can! i i 
‘ - - 
‘i 4 








PROBLEM NO. 89. 73 
(N.Y. C.P.A,..Examination) 
The New York Land Company was organized January 1, 1907, with 
an authorized capital stock of $500,000 divided into 5,000 shares 
at $100 each, par value. 


The total authorized capital stock was subscribed to by the 
following: 


JGAR DSS His PRRPAIFE. TPOR. Oy. OPppieinas & <L,000 
Richard RoGyeccccesceressccescvcrsesevee 1,000 
Construction COMPANY severe cssserdrdedase 248 , COO 
WELLL AM OTRO KSC Pie soe Pie seb sod eee & 6 1,000 


Orpani SaVIGH COGMOaN ys Fac loeb on euep une 249 ,000 


$5,000 was paia in on date of organization, $45,000 was calle 
ed, payable January 16, 1907, anc the balance of the. subscripe 
tions was to bé paid in as called by the Boare of Directors. 


The. New York Land Company was organized for the joint benefit 
of the Construction Company anc the Organization Company, and 
subscriptions of all subscribers were to be paid by those come 
panies, John Doe anc Richard Roe representing the Construction 
Company and William Jackson representing the Organization Com- 
pany. These two conpanies were also to finance the New York Land 
Company and to advance cash to it in equal instalments. The 
interest on these advances was to be figured and credited monthe _ 
ly om the amounts advanced by each company. Interest was also to 
be charged on subscription calls paic subsequent to date of call. 


The company was not to commence operations till later in the 
year and in the meantime was to have no general office expenses. 
In lieu of these expenses William Jackson, the treasurer of the. 
company, was to be paid a sflary of $250 monthly, beginning with 
January, 1907. . 


On the date of organization, January 1, 1907, the officers of 
the company were duly authorized to make the following purchases 
on the dates mentioned: 


| “On January 11, 1907, the purchase of land from A B for 

500,000, $25,000 to be paid in cash, the balance in notes of 
plO0O,000 each, dated January 11, 1907, payable in two, three, 
four and five years from date, anc a note of $75,000,payable in 
one year from cate ; all notes with interest at 6% per annum. 


On February 1, 15097, the purchase of land from the Water 
Rights Company for the sum of $250,000, of which $50,000 is to 
be paid in cash February 1, 1907, and the balance to be paid in 
equal installments of $50,000 each, in one, two, three and four 
years from February 1, 1907. The deferred payments were evidenced 
by notes including interest in the face of the notes as follows: 


164 


Se ie a ee ee fj me 
a ada A ia i 


































.e8 .Ou METEOAT 
(obser tmaxte eAe%ed aXe) . . an 
d¢iw ,wOer af yreunst hesitant paw yrecmod frst wo well en? 
sovate OOO,@ ovmt bebivth 900, 00288 to stoote {sttqsas bestrordsue ne 

| .eutsv tsq ,ifose COL? ts 


sinodtus Lato ont 
—“pgatwol, 


ay 


oft yd oF hedtysedue aay Moove Latigas be . 
{Lot 


000 .£ 8 i ke tert cot. | 
000, £ con cveel SC SRESebeaeeentaeee hbusholh 
009,355 nn cnces @s 00 Skea eRernes noktourtenrod | 
000, f on suede tah REMSgMine gnOemOes melifiw . 
ttastns3t0 


000, GSS epcacuscesess shea aaeaene fio 


teh mo at brag esw 000.3% 
~rOOr ,OL yvrsuast sidsysed be 
enotds 


,rottas faag to to 9 
sonsisd oft oie 
beraog att yd bel{so Bs nk Staq of oF enw 


sttened tatot edd 10% hos imag%o BSW yasqnod Sad 2oY wot eat 
hoo ,yeieqrioo sorteasicsatO oft oe ynagiod mottoutsaroo ait to 
eto) enone yo Sisq ed oF Stow etediroedve Iis to paotiqiusadve 
noktoundenod oft gaitneceitqe oon Sxadoth Sas eod mdot ,eotnsg 
wo mottasinsy tO ent anignasetgot noewvoest marLLiV Sas yaragnod 
bred weoY we oly sonent? ot oels Stow astnaqmoo ows seenT  -ytsd 
stT ,etmomfatent Laup® at gt ot daso eonsvds ot fas qEio0d 
eijmom betibeto Ons beta tt ed oF saw esonsvhbs sess Mo seotetat 
ot o2f@ saw teotetal ,ynaqnioo Mose yd Foonavhs etnvoms oft no vi 


efino to 9585 od treupsediue Diag efL{so noltattoecue no hearato od 


effso saw 000,889 
aqitosdue Sit to 
~etotoe tld to 


att mk totet iftt+ emobtateqo goremmoo of ton saw Yracnoo erfT 
,eoestoqxe eof nic Latoreg of overl of aaw omidnaer eit at Ons 189¥ 
ots to tenvessit oft .moextost moatsitw eseneqxe ocodd to wotf al 
dtiw gatonkged ,.vidsaon 0am; ‘to yrsine A bisq od of esw ,VEétsqnios 
me - ~~  ssoef ,ytsunsl 


to atoottto edt ,VOCL ¢f yreuast ,notsasinsgto %o stab edt oO 
aeecnotua getwollo® ort octet ot hostvedtuse Ylub oiew vere oo ad? 
shenottnes aossd ort m0 


. & A mort basl to seston odd ~roer Lf yrasaet m0 ae 

o aotor mt somefad odd ,slese at biaq od ot 000. oRq O00. an 

~ootds ,owd af sidayed voor ,ff yerauitsh Hotsb .doss 000, 00L _ 

at eLdayeq,.000,e%% Yo Ssvon & oe ots mort arse" evit ons iol 
emus “94 20 ts gectesms mgtr seston Ifp ; ets mori iney eno © 
qf wisundet 00 
sot ynsqmo0d etdath 


at brag od ot OOF 
atvot orn oot sows ,ono at 


heomehive oew edcomysg beire1eS edt ae 
:ewolfot es eestor et To o9et oft at teotsont gmt 


-~ 


Note dated Feb. 1, 'O7,due Feb. 1, 
Note dated Feb. l, 1O7, due Feb. l, 
Note dated Feb. l, 'O7, due Feb. 1, 
Note dated Feb. l, 'O7, due Feb. 1, 


'08, without 
09 ,without 
110, without 
bln without 


interest 
interest 
interest 
interest 


x 


P) 
359, 000 
&62,000 


74 


355,000 
56 , 000 


The treasurer did not open the books but merely kept a re- 
cord on the check book of the following transactions to February 


28,1907: 


Jan. 1, 1907 Check received from 
Cogeon, account. of 
subseription;s vss 

Jan. 1, 1907 Check»received. from 
Co. on account of 
subscriptiony. ws. 

Jan. 16,1907 Check received from 
Co. On account of 


Construction 


stock 
Organization 
stock: 


ss 


Organization 
stock sub-. 


Striptionsand advances; 2.0.5 


Feb. 1, 1907 Check received from 
Co. on account of 


Construction 
stock sub- 


SCrinpc.on and advances, ..vses 
Jan. 10,1907 Check issued to A. Smith for 


legal expenses, .. 
Jan. 11,1907 Check issued to AB 
of land purchased, 


@naveasevervand¢@ 
on account 


@o@eeoenreea eee 


Jan. 15,1907 Check issued to Stationery 


Company for books, 
BUS isgiv-+ @ ale en's eee 


seal, stamp, 


eeoveees#evrve¢ee 


Jans. 31,1907 Check issued to William Jackson 
Or Salary Or: January , vices a's 


Feb. 1, 1907 Check issued to Wate 


r Rights 


Company on account of land,.. 


Feb. 28,1907 Balance in bank,..... 


eoeeereeaeeeve 


& 2,500 
2,500 
27,500 


47,500 


$80,000 


80, 000 


All transactions, including interest adjustments, 
the rate of 6% per annum, are to be recorded monthly on the 


books. 


¢ 475.00 
25,000.00 


234.75 
250.00 
50,000.00 


é75 959.75 
4,040.25 


$80,000.00 





— 





figured at 


Prepare cash and journal entries, opening the books on 
January 1, 1907, journal entries and cash book entries for each 


of the months of January and February, 


January and February. 
Ref. 24-2, 
164 


and trial balances for 























=* 
> 


e 
= 


BS ae yee ene) 
000,888 taevetnt tuodtiw,80!.f .det oub,TOl qf .det bed 


OOLS8e teotodnt tvorisiv, COt gt .fot ENB, 


000,ea% teetstat guodstw Of "fr idet ouh, TO! yf adoe, bods 
000,883 teotetnt tuoctin ff £ ,det egb, VO! .f a 3 


wo4 a got yleton dvd exfood edt meqo ton brb somenett ¢ 
yuswide! o¢ enoitorencsd gaiwollot odd to Xood xoedo Sat mo. 


” ha 


| aobsouatenod mort bevteset Moero: OCf .f amet 
| uoote To drssoo08 0°09 ery Ne 
908.3 & otek ee eee ids weed ~noltqitoedue fog tS ) Ley 7 is .: aL 
nottasiasgtO mort Beviesot wooed Yoel yf .ast 
Moote. to Invooos 0 09 aay 
008. eaobensccweeasebagor ds ToRtvG ae em. ig Pe ms ee 
| sottesinagtO mort bevieset woo yoor,efL .ast 
-due woode tO Faooos MO «00 as | 
006 . VS even ne, 2eonsvhs bas molsgiios Lo 
nolsoustanod moxt beviteost xoesdd yoel ,f .de® 
| -due wusote to favioods mo .00 
COZ. TA . weeewe re BOOMSVDS Sea motsiqitse | Wiig i aaa ol 
rot atime .A of seveet Moedo YOCL,Of «ms 





























neg 


! i £ 


- 
Jat ie 


Aa 


00.avs @ seta wceccuceves  GOBMOG40 Lage. | : 
3 ¢csoose Ao 4 A of boweet Hood VOOL.ff ,ast 

00.000, 68 uw cuvcncede HOzsdOtug Diet Te) 
ysoroltase oF pesaet wood) YOOL,eL «mat 


qmste .laee ,alood 107 yitBMoD 











av, dc3 cl eae cekeh ass haw a ee - : : } 
| soevont matiliw ot beveet aoodd FOOL, Lf met 
OO, 028 casero eYreunst ‘tot yinipe MOT 4” bails: oe 
“atrigth tetal’ of boreel aoerto yoei .f .det 
00,000,628 ©. ,eebtel to tivosos No yaBqmoo ee 
ay.o2e, avg 000, 08% | | Daa ee 
G3,0D0,8 ereevenesee vee ob CRE mt cone lea TOOL, 8S. SOF am 


90.000,08% _900,03$ | | Piha 


tp Howat? ,etuombenths tasretat patbutont «anobkogeaent 114 a 
ant ao vinttmom bebtooo% od of ote mune 16q to sn ae ° 
7 ‘ | ea ne A P » 2o > yoo 





ba 7 : 

nl i > 
" * _ i. 
Ue pO ' 





no etood afd nataege ,eetdins Lan I aa 
Hose tot eotatns Hood dead bus 88 B | sesh 
qo% egonnisd [atid bas ytaowdet Sas Ytssnat odd te. 
coo - Tare / ; 


PROBLEM NO. 90. 75 
(N.Y. C,P.A. Examination) 


A conpany is incorporated to purchase by an issue cf pre- 
ferred and ccimmcen capital stock three concerns, A, B, and C, 
doing the same class of business. It is found that the assets 
(by actual valuaticn) the liabilities and the average annual net 
profits of each concern for the past five years are as falluws: 


A B C 
Assets as valued,....2+..-- $100,000 $60,000 150,000 
Tinbi Litis aerate os kale 6. 30, 000 20,000 50,000 
Annual net prcfits, average 

five Voere lon Gee ee, . 48 10,000 15,000 8, 000 


It is required to know what amount cf stock of the new com- 
pany should be allotted tc each ccneern as equitable compensation 
for net assets and gocdwill, and the matter is referred tc you 
for report. What shcovld be the amount of canital stock of the 
new company and how should be apporticned to A, B and 0? 


164 


— 
























ar 8 2 og Lou MeO ay aie 


(noissntmexd Ast) see 


J Am 


ited 


-ong to ovaet me yd sescoire ot Hbatatoqioont af ve 
,o Bae a ,A ,emroon09 setds Woote fasiqes® sonmmos 
atoses ond dadd Savot ot SI ,eeontexd To eeasld 92 
tor: lawns sgatovs oft daa eoftiticatl odd (mottectev Xe 

-spwoliol es ote etaoy evil tesq ors tol misomoo one 7 
ie a) 


i. 
= 
Olen  - 









; aa g A | 
000, 08L8 000 ~O8:? G00 ,OOL? ens eeeonese heutlev 23 a ew tame a 
000 ,0¢ N00, OF 000 ,O& ; baetacssa0genes sAGro LL SOM mm 
agstova ,ediioig ton fewacA 


000.8 — 900,6f 000, 0L seseeenec cass ee BERBY evit rae ig 


We 





 cetog wor edt to Noote ‘to dnvoms Yadw wom of botkupet ef 1 an 
 goisaensamos elfdssiupe ea mreomed toes oF setdofla ed bLyore _ ot 
. voy at hewreter af setdam ong ona ,{Liwboog ons etoses gen tot: tj 
sit to Hoote Laticss Yo ¢nvome end ed Slvoile tart taoqet TOT 

9) bas & .4 ot Heaokdaoggs od biyods wod baa yasqmoo won 


| / Reba en 
bar Wid tere ee 





PROBLEM NO. 91. 76 
(N.Y. Cin Pa Bare ements) 


A corporation issues $100,000 in 20-year bonds, dated January 
1,1902, redeemable out of revenue by means of 20 annual sinking 
fund instalments of $5,000 each. December 31, 1902, $5,000 is re. 
served out of profits and placed to the credit of Reserve for 
Redemption and $5,000 is deposited in a trust company @ 2% and 
charged to sinking Fund for Redemption. Separate sinking fund 
books are opened in the ledger in which Cash is charged and Sink- 
ing Fund credited with said first instalment. 


February 2, 1903, inventments are purchased for the sinking 
fund and the principal thereof is charged on the sihking fund 
books to separate investment accounts, while the accrued interest 
is charged to Revenue from Investments. 


. The inventments so purchased are as follows: 
a Two (2) gold bonds 5%, due 1950, of $1,000 each, inter- 
est payable,May 1, Nov. 2,@ par and accrued interest. 
b One (1) 6% gold bond, due 1940, of $1,000, Apr. 1, Oct. 
1, @ 120 and accrued interest. 
¢ The company loans on first mortgage $1,400 @ 5% inter- 
est, payable Aug. 1, Feb. 1, 


The interest is regularly received and deposited in the 
special account, charged to Cash and credited to Revenue from 
Investments, which latter account is in turn closed by transfer 
of balance to Sinking Fund for Redemption. 


December 31, 1903, the sscond annual reserve is made in the 
amount of $5,000, less the net income of the sinking fund for the 
expired current year as shown by the sinking fund books, and a 
corresponding deposit is meade in the special fund, while the 
proper entries of the receipt thereof are also made and posted 
in the sinking fund books. March 1, 1904 two (2) 6% bonds of the 
same issue as purchased in the previous year are bought for the 
sinking fund @ 116 and accrued interest, one (1) of the 5% bonds 
is sold @ 103 and accrued interest, and a first mortgage for 
$3,500@ 5% March, 1 and Sept.1, is purchased. The 6% bond bought 
in 1903 and held at 120 is written down to 116, and the remaining 
5% bond held at par is written up to 103 by cross entry between 
the principal account and the Revenue from Investments account. 
December 31, 1904, the third instalment is reserved and deposited 
in the same manner and on the same principle as the preceding ones. 


Frame the necessary journal entries on. both the general and 
the sinking fund book to give expression to the foregoing trans-~ 
actions; also the accounts affected in both ledgers showing the 
status of sinking fund at the beginning of 1905. 

Ref, 19-4, 


164 


' 
ut : 
o 


ue * wean ek 1y ib | Po sy ( 
a : ae Sed |) 
x Re f f 
; Acs » Tee eh AS | 
+) i 4 by ‘eae hi 
’ h i A i 

























ire 


ih oh 


oe) 


at 


ayraunel, BOPAB eebnod teey~-0S az 000, 00L5 

getter e Dias an O8 Yo easom yd eumevet Io, 

art at Q00,¢ sel Le sodinoged «close 000, . a | 
tot owreseh to FiGexo odt of beosigq Sas atti wo be 

bas RS @ Yaaqmoo jeuts & nt. bod teoqeb ak 000.86. m0. wWqmabon ae 

bert oabinkgs odateqsc cottqmebel ‘ot baw hints ot Beptaio | 

2 an 










eMieke Sak begrado 2t desy dotdw mk togbel ond mt . 

| jnomgeteank Jett bise nitiw bet theto, Saar 
heesdtotwg ota ednomtnrevat eoeL ,& yrsuidet i a 

» Sept satuats edd ao ban iso at tostetys feqtoniag ott bas bast > 

geoatnt bouneon odd oLicdw ~edounoon tromteoval Od nts ee of eXood 

ee ee, } btaomteoval mot? omsved of Degaaco at 


griintie eft to? 


 yewolLot es e786 hogartouug of etnomtaevat ont. 
erotat dose 000, £8 to ,08eL enh Re ehrod Blog (S}) ow? @ 2.4. 
.teerednt Bosctoon Sra "tsd @,8 .voll ~f Wald of otis s phasis a 
.¢50 .f «TQA .000,f3 to ,ObOL Nb epaod Blog RA (L) en0 od 
¢eoreial beureos bee OSL ae 
atotnt RA@ 002,£% easattom text? mo eansot Ya odT 9 


+ { .det ,f£ «BUA ofdayad «ae 


ett mt hbetisoqeS bas povtooet vitelvget si gesretnr oct: a 
mort suneved o¢ Settbeto has dasd ot begtads ,tawooos tatesqa | 


astensit vd beeofo amt af ef ¢nuosps “ested Hotdw ,atnomd cove 

: . gfottqmebon tot bast gatinie 03 goarisd to 
ond mf ebem ef ovrocox Csuans brosean oie SOL . LE todmat A ha) 
eit to% bav't antumte oft To omosnt soa oft aeel ,000,8¢ to tavomn AAtS 
a bor .exood. brut gnivate eft vd rode at they taretIVS bertqx® | & 
ot af ebam ek theoyeb gntbaoqeett0 ae 


ent elicnw ,bavt [atooqe eb sie poae 
Sam Onin ots roetedd Jqteoet eng fone btine seg0%} oe 
emee ics | i 
co] 









? 


boseog Das 9 

att to ebrod 238 (8) ows B00! i fotsaM .exood hawt gainate 
votvetq edt mz beerdotug 88 
ebrod R& ect to (£) ano  teotetat peuttoons bas aff @ } 
ae “ot egoattom fertt s bas ,teotetat bewtoos Sak 6D 
1) grigued baod 33 ei? .beandomg ef ,L-Fq02 bas L yifoteli 
| gnintoames oft bra .8lf 99 nvob nettinw ef OS! gs bfed 
1  ‘teowted ying e2#ots yd EOL of qu anq t45 
wtouroson etnontteeval mort eaunove 

yo Bettroges ban howroeet ef trols 
Og ROMO Amihoeoo tg ait en slaqtoning one 


ian 








7 a & f ; 
+) . se 7 
i if 

- 

‘ ) “a 

Diath Ae 
1 + 

I 


ih i 

a = 

. 6 oe tale f 

$ he PO ho 8 ie 

q fe nikal f \ 
ve 










$b Lanenca oc 
eemett gatoaeto 
edt aeffworle esogh 
Nag 6 fe a 


Ain ‘ 

Ppa sa ‘ j F ; ; ire : ; 
' i i \ Ta tua i ’ Laie 
Ad r ij % f ; : i ] i Pay hx mae Tory, ie, 

A ‘ 4 i : } i : , Cr ip ee i Ve yyy 
ian ' Baril iy yen aia 

7s ‘ H 4 ‘ ; 

ff ‘ A | ei ~ ie J hi 
had fat ie ih ; ‘ di 
i win h d 7 : ‘ 
6 rs i ih 1 4h ’. r yr ncoe 
id ah n 


J ns 
* Ads 
oa 


¢ iy j “J ; 7 x a [ , , , : i ay ae 7 ad 

ine phy) 4 Daw laa 4 A. 4 eo We Vist! og are 4 2 A, et ae k 
1 ae id rere ah roy bi 0. seh Xf ely 7 ; 

CP Pn mare Or 


PROBLEM NO. 9e. Te 
(N.¥. C,P.A. Examination) 


An issue of $250,000 fifty year bonds, dated July 1, 1904, is 
redeemable by a Sinking Fund into which annual cash installments 
are to be paid by deposit of funds in a Trust company which allows 
interest at the rate of 2% per annum, credited Jan. 1 and July l. 
Separate books are to be kept solely for recording the sinking 
Fund operations. The fund so created is to be invested in 
interest-bearing securities and the income therefrom is to be 
applied to the reduction of the succeeding annual instalments. 


On July 1, 1905, the first instalment of $5,000'was paid into 


the fund and on the same day the following investments therefor 
were made: 


Two 5% bonds of $1,000 each, April 1 and October 1, at par 
and accrued interest. 


Two 6% bonds of $1,000 each, May 1 and Nov. 1, at $110 and 
accrued interest. 


On July 1, 1906, the second instalment was duly deposited to 
the. credit of the fund and on the same day the 5 % bonds purchas- 
ed in the previous year were sold at 101 and accrued interest, 
and other investments were purchased as follows: 


Two 6% bonds of the same issue as those purchased in the — 
previous year at 105 and accrued interest. . 


Five 4% bonds of $1,000 each, Feb. 1 and Aug. 1, at 98 and 
accrued interest. 


The income from all investments wae regularly received and 
deposited, and the value of the 6% bonds purchased in 1905 was 
written down to conform to the value of the bonds of the same 
issue purchased in 19906 at the time of said latter purchase. 


Frame journal entires and write up the Sinking Fund ledger 
accounts showing the amount of the cash instalments, payable on 
both July ly S06 end July 1, 1907, and the status “or tie wee 
Fund at said dates. 

Ref. i ey 


164 








dog Sia a 78 OW ME 


ial 


pan inten hefed ) 





























ans Ry a 
ca fast idee h bee itich | to otat f 
mt jl git bree rot Sa incll # xt of 9 oe 
a apvevn! o¢ of BE Sesneto of bugk sat : om 
ae of ef mortotons omoont oft  goktitwose Balt ws 
sataomindent faunas griboeoowe ocd ‘to nogtonbet ¢ ie 
odak Bheaq enw 000,39 to sromtatentt feck oc 200 of 7 
oles edaomtoovat aniwolfo? ont a. one art + no be i 
ve ay’. 
TAG, af of modoto0 bre L£ t2gh “ “id e 


pun ort ga .f .volf bas fait toe yi 
* 

ot sebbeaten - 4 ea esw peat ve a eee . , 

«ssionwg ebriod & 3 ent yeh aoe edd no Brie | i 

Seqroset pouoon! bas [OL #6 Sloe. otow tse) , 

| sawollot es Soasia mg oreW ha : 

oft mt bosadoteq eaodt ee oueek emee ite | K 

-tdotodnk berrt998 Sas oa 7 

baa BO te .f 6Bth beta i adeet i989 000,19 cv q 

. Mee 4 

pte sévtecer erestuaer eae ervend alone tts. m0" oy 

env A0OL at beesroted ebrod Re" ent to enloev o By 0 a 

erine afd to ehaod ent’ to ahs td cee ce | a 

~szasomed tedtal ‘bthe, 16 haart ‘a 

megbal bat grtinte ond ay otttw! ae: 

no efdeveg ,ednenfatent Hasso a 


* 
ie i 


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] _ t F 4, 
ane ri A f 
wand Ps 
x ro Kat Nia . 
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Sal “a ia ul + oe 
ae ee idee me te, 
- ed a i yt 





PROBLEM NO. 93. 78 
(NeY. C.P.A. Examination) | 


The Virginia Coal Co. was originated on January 1, 1906, be- 
gan operations about January 7, 1906, and kept an ordinary set 
‘of books ( by Couble entry) but did not close their accounts at 
the end of any fiscal year, 


After an examination and verification of all accounts stated 
in the trial balance they are accepted as correct, except that 
termed "Sinking Fund Payments" ($22,500). 


The mortgage securing bonds to the amount of $200,000 con- 
tains a sinking fund clause providing that the company shall 
deposit semi-annually with the Sinking Fund Trustee 5c per ton 
on all coal mined; such payments shall be mace to trustee during 
January and July of each year for the preceding six months! 
period. Money so deposited is to be applied, as soon as practic- 
able, to purchase bonds at not exceeding 115 and accrued interest; 
compensation and expenses of trustee are also to be paid from the 
Sinking Fund. Bonds, when redeemed, cennot be canceled but are 
to be held by trustee, who shall collect the semi-annual interest 
thereon and apply to the same purposes as the 5¢ per ton payments. 


; Bonds are cated January 1, 1906, run for 20 years and bear 
interest at 6% per annum, payable January 1 and July 1 of each 
year. 


Payments to Sinking Fund Trustees (the General Trust Co.) 
have been as follows: 


July 27/06. Payment for 6 mo. ended 6/30/06, 5c per 

Pr UOe BOL OOO EGE «oa wes 0.0 8 ee oe ve 8 63900806 
Jan. 24/07. Payment for 6 mo. ended 12/31/06, 5c per 

ton on 180,000 tong, .s-secsacicscraces oe M20 79B00R00 
July 28/07. Payment for 6 mo. ended 6/30/07, Se per 

POM Tien SO, COC MOIS WAG wicket hee ae hae 9 5Q00,00 


$22 , 500.00 


On Janurary 30, 1908, the company paid to the General Trust 
Co. (S.F,Trustee) $5,500 for sinking Fund payment for the 6 mo. 
encec Dec, Gl, 1907, being 5c per ton on 210,000 ‘tons, 


The General Trust Co. submitted statement of receipts and 
Gisbursements for account of the Sinking Fund to date (January 
31,1908) as follows: 

CASH RECEIVED TO DEC. 31/07 
July 27/06. S.F. devosit for 6 mo. ended June 30,1906 
MEO) Tis ee 0 Seb iw ie ete cata asta nie hoe one 8 - $ 6,000.00 
gen. 5/Ot. ano? coupons on & bondase ilu... 05a 2 6 ’ 150.00 


164 


BY | 52 OU rear Cc 
(motsantmard AST Pi Yet) 


«of ,d0@f ,f Ytaunst ao hetenigkto Baw 400 £n00 atate tv on? 








‘yon yradiote sa tqor bra ,OORL .¥ yiavast tee s mols sroqo 83. 
$8 Bd rerogo8 staitt e2olo tan BES gud (ytdro elfduo® Ye : Rang to 
+ t89Y Inoelt ¥ fine odd 


hedete etnwools ‘fis * to notgsottixoy dae notsadimexs 18 1ea7A. 
ein gasoxe ,soer105 &4 02880) ers yous oonatad Letts odd ct 
- (008,89) “ednomyad eracuct gadiabe” bes 


-109 000.0080 to Jmvoms edt ot shad aniuoee | enenc tom eat. 
flare yaaqmoo oct tadys gathivoy: geusls peut antinte a entat 

not taq o@ eodeurT Savt gabinke ent Agiw vifauacs-imee FLeoqes 
gaitwd eeteris oF onan 6d ifate etaomvad pa shonin fs0o fis no 
‘adinom xte aaphgoeg att tot teey fone to vinl Sas ersuael 
eottootg en moce cs ,betiqags ad of ef batteoqsh oe yerom -bott9g 
gtootetat bemyoos one “art anthesoxe yon t8 ehrod eescotmde of ,9ids 
suid mort Bheg ec of cele ots soteuty Yo asaneqxe bas nortseneqnoo 
arta tud helsonso od Jomaso ,bemeobet marty ,ebaos =. bau ant tiante 
travetat Laumte-Imse oft t+noffoo [fate ont sotenit wd Sled od ot 

e terant tee wot tog oc edt es aseogiyg ‘amec ot ot iit baa sooerett 


asad pas ersoy OS toT mut ,OOCL Qf yieuest pets abroad 
Hone to £ vinl daa £ ytsanel eldeysq mms <9q we te ait 


(.00 tewtT L[atonso si gestern? — nie ot ae 


sewolfo? es mood overt 


6 94 eer bobrs .om mol saoavet .dO\Ts viet 


00,000,080 @ . seceaveeeito? OOO,OSE Mo 

soq 98 “AOA LE\SL bebme .om 9 10% agen ah -TO\SS .8t 
00,008, 7 vacn hata buns coueseahitoe ars Oaf ao aot 

| seq 98 ,WO\OE\e bebse .om 8 vor snamyad .TO\SS ylvt 
00, 000.9 Pees eer ee ¢ FOS ae no mot sis , 
00.008 , S&¢ 


por ann arartsveetapns setae ee 


¢our? Lacocen ot of Sieg vitaecnecio edt .e0ef ‘et qietunst. 
ou 8 od, OT JHOMYST bast gaivake tot 008 ae 29TeK 
eros OO0,0Lf mo sot tq od sammie Oe, i 








here etotoost to taemetate bot imdg a 
yreunet,) et85 of brs caus Gh ont to. 


FOAL .Oud OF cisaen a 

300f, 08 sant Hebe .om 2 tot dhegced 

GostbO® # dvetrnasn sane ey RBM oan 
00,0ef i kaa ones mo enoquoe 





i 


Jan, 24/07. S.F. deposit for 6 mo. ended Dec. 31, 
1907, L60, 0000 fone Bh eis bien cis an 

July 3/07, July/O7 coupons on 12 bondS,e.eersseecees 

July 28/07. S.F. deposit for 6 mo. ended June 30/07, 
180,000: Gone Ati Big as salah ols O<ee wie «late « 


CASH DISBURSEMENTS TO DEC, 31/07 


AUg. 16/06. Bonds redeemed - 5,000. atlas one's 
Commission Gb ol B9r ga aceca\s 0b ae We KONE anes. «te 
Acerued SMEGCHOETE 5 vate o «ed 0+ to abt WalIO® oorls 


Feb. 15/0. Bonds redeemed: 
4,000 at 108,...... $4,320.00 
PeOO0est 430544441 -1 2, 2008H0 
hG00GsatadiP.ia.ae, 1,150.00 8 9,640,006 
UE E EE, 665 0 dis ea wee ke aiais 2 17.50 


Accrued interest , was oes. oh “662,50 


Aug, 12/07. Bonds redeemed: 
9,000 at 90,........$8,100.00 
4,000 ab) parjecasee of, 100-00 # 9,100.00 
COMMIS LON sag is <bGbbescesces oe 250.00 
AGCPUSC TAUCTETESU ce cs cs canvas 70.00 


Dec. 31/07. Compensation of trustec,....-$ 100.00 
AGVErTISING. bb cser dees sceneries 50.00 


Cash balance in hands of trustees Dec. 31/07, cccsees 
Received in January, 1908, viz: 
S,F. deposit for 6 mo ended Dec. 31/07, 


SIP O00 Sond. ati Sa, esis eiaas Cacess daa Gh GeO WO 
Jan. /O8. Coupons on 22 bonds in S.F.,.-.. 660.00 
Interest allowed on balance to 12/31/08,. 100.00 


“J 
cO 


& 7,500.00 
360.00 


9,000.00 
$23,010.00 


é 5,500.00 
12.50 
37,50 


¢ 5,550.00. 


7,710.00 


9,420.00 


150.00 
$22,830.00 
$ 180.00 


6,260.00 


$ 6,440.00 


Prepare entries to state properly on the books of the 


Virginia Coal Co. all Sinking Fund transactions. 
Ref. LB"6-¢ 
164 





















BY 


00.010, 883 


00,036 es SO MrT SL no- dl q 
~TO\OS onut hoebae OM 8 0 j etek 


00,.000,¢ gidels OB rs 00 eee CORRE 28 
> on + 


woO\rs .oad OT amysmaeAvacrd HBA0 — 


0,008.8 B vices onesie eOEd ts 000.4 = bemosbot ebaod 


08.31 RPERERRT RN  ecomnnty 
08.8 ene eee page ceeis ar etme Senne oe 
00.088,.2 @ ’ | “Bie ete 
;  ybemeebor ebro TO\SL ot 
00.088 44 sald eee ts 000, 4 nf Pl aa ae 
00.023,8 & Sete smsteeae Ps rant. ; | 
Ah 1 + G oeere & . 
oa.tL ne eee emobee tomod 
00, OLT,F 08.59 } e's 6b le on gene poeHTooA 


3 shomsobet ebaod .WO\SL eastA | 
0 5 t “ 00s OBR RG st ee re 600.2 ; - 
> » Oo : a de ot ovvoee®e ASG e 7 

‘ : teabamod. - 


00.088 - ew kebreeaveeee rene 


00.085,8 00, OF [ eeebieaneee eee ~teotednt bestooA ; 4 ; 
OO.00L  @.-ese0,09teutt To notteemeqmod .TO\LE .ood - 
00,06f 00.08 eee s0808 evreoe e+ >. eoegnteldievbA 7" 


te 
00,028 ,SS4 


00.08f ¢ feet ,99d soeteutt to ebrad at eonaisd desd an 
,  egty ,800L , visual at bovt * 


: YO\LE .990 Bobms om 8 tor? tieoqed .Tee 

00,008,4 % rE rr 8 enot aan S 
00.039 oa vee tee ae sinod §8 mo anoqvo® BO0\ fat 
00,008.68 90,00 2 BO\MLE\SL of sensiad m0 pewolfe teotosal 


00,028.29 | nae | | 
oft to elood oft no yiteqotq esate of eolttne etaqotT] 
senottosanett ard geiiynte {£2 .00 Le09 aintgilv — 


= ' «3-88 Reet = : 


nt ete 
<i 


PROBLEM NO. 94. 80 
(Massachusetts C. P. A. Examination) 


A corporation authorized a total issue of $500,000.00 of 5% 
bonds in denomination of $1,000.00 and $500.00 with interest pay- 
able January 1 each year and sold the whole issue to underwriters 
January 1, 1914, at 90. 


The trust deed provides that "there shall be established a 

aang to be called !' the bond sinting fund,' to the account of 

which there shall on the Poole epee day of December of each 
ean be carried a sum equal to 7% of the total par value of the 
bones 2ssued, and that, out of the moneys’ so carried’ to the 
BCcoune OF the said fund, the company shall pay tne interest on 
the bonds as the same becomes dye, and the balance of said moneys 
shall be expended each year in purchasing the bonds of the com- 
pany in the open market.” 


In January, 1915, the company purchased $10,00.00 of its bonds 
Bt o97 Onc remrec ano cancelled them. “In’ January, 1916, the 
market price of the bonds is 98. 


(a) How many bonds may be purchased from the bond sinking fund 
in January, 1916? 


(db) Make journal entries for all the transactions from the 
date of the sale of the bonds to and including the purchase for 
the sinking fund in January, 1916. 

(c) Show trial balance after posting above entries, 


164 







iy 
eae 


D Soy eee od acs 
36 Inrooos ait OF: 
done to xodmeood, BO" 


edt 2° acliev tAC fatot 
| eid of Seratag oe 


0 saoratitl Sitt ¥ 
eyonom Ofee to es 
-itO2 ait to & 


¢ 
’ 


abnod ett to vider bebedt 
odd aeet peEee, at « 


rics’? aati baot actt ont Soest | 










era Pe avottosenstt ait & 
tot; adit. ots ole hie | pr taeris.) 
ul 7 ; ail ie ee : is a 
‘ pte l tb ae i eh!) Ler it 
Laginsno evode antseoq nonna 99 | . Sean 
ee 7” » EHS Be : et ah q A] van stars < 
~" 4) Leah 4 i ey ; | ‘a ie ry | > a ut ny * oh ie 


= ‘ : } , . | i ; i ° , i? F af 
q PA th 5 ” ©. % hs i or 
sai Ny 4 as Ie Ban 


ae nies 













a 7) olps 
i v ‘ .f M 
ie : 
bf af - a om e 
: » se 
1 ait) ' 
: ai joa F ia ‘ hs 
‘ Deny, Cie * 
. : » 
vs 4 ; 2 Pas: ~' 
pat ace) ie an 
fo. one 
ie + oi thls uF 7 ay 
ee ay Be mee Limit ce 
u r 5 on st ‘ 
: Ros 
‘ iy sy 
. bd ’ ye A 
Vv i : ‘ j Ki : " 
4 to 4 a j ) f 7 
ae as i iv, 
] ales 7 ~y # 
‘ ha’ a) > 
t é : Hehe te it Ur 
4 FT) i (fe S 
- ry aA rT 


PROBLEM NO. 95 81 
(American Institute of Accountants Examination) 


Frame any entries necessary to record the action of the 
directors as it appears in the minutes of the meeting of August, 
15, 191", of which the following is a synopsis, and the action 
of the officers taken pursuant to authority conferred on them 
by such minutes: 


The treasurer reported that the profits for the year as 
aucited amounted to $59,287.00. Voted that a dividend of 
940,000.00 be paid on October 1 to the stockholders of record 
September 15 and that $10,000.00 of the profits be appropriated 
as a reserve for belief of employees disabled while in the 
service of the United States and invested in Liberty Bonds. 


The treasurer reported that he had an offer of $1,000.00 in 
settlement of a debt of $3,000.00 of the A. B. D. Company, which 
had been written off as irrecoverable in 1914, He was author- 
izéa to *Aecept ‘the offer “in full settlement, 


The president reported that a firm of bankers had offered 
to purchase $200,000.00 of the company's twenty-year 5 percent 
bonds to be cated October 1, 1917, at 93 and accrued interest. 
He was authorized to accept the offer and deliver bonds on 
that date. 


The presicent reported that he had received tenders for new 
building planned in the amount of $185,000.00. He was author- 
izec to execute 4 contract: accordingly. 


164 


eae ae -otf He EIEOG Bit 
{hottantmaxa asantayoo oA to ey 









ont to mottos ott bxooo Peers ooo eeRagne yrs ont 


f203KA To Battoom odd 10 eetumtm ont nt ove 
‘nortes oft bua ,eteqonye & at antwollot oat moliw Yo 
ment ro herretaoes Yi trod su ot Rea i. eteol t’ 


ar 


ga toy ont xo? etitond edt tact bed oY TSTUesett o 
to Srebivibh » tent SetoV .00.%eS, 088 o¢ bodauome be 
btoos: to eisbfLorfoote off OF £ tedoto0 mo biea od OC 
betsitroxgas ed etttow oft Yo 00.600,0f8 tand Baa af” 
ott nt oLtriw beldseth | tk to eifed tot evisest s ex 
-eono8 ytvedid mt heteevnt ba sodst2 hediny eit to eoivuse 


mi 00.000. £8 Yo setto as bad an tat bettoqet ‘tetvasots edt 
5 5 sly. eregnod -< .4 .A sdt Yo 00,000,c9 to gdeb s to tnemolttoe 
-roddun eaw O89 fl at oldarevosert? be Tlo sedtiaw meed bad 
| staomeltiee Iful at toTto eft tqs008 oF bost 


horetio Bad evtsiinad to met, a tert bot et Sie ; 

dreoteg ¢ tsevevinews a yasqmnos edd a= bt 00,0084 “aan OF 

steetotnt beyioos bos €@ fe .ViCL .f a haan 
ao ebtod sevileh fas t8rto ort se00n of & 










wea “ot erebnos bevieoss bat on tans irae gine 1 oo 
~toltua esw eH .00,000,88f8 to tnwoms ent at bo. | fad 


oe 


sVignt bitoses tosta09 8 ejueex%e ot Sest 
bal 








PROBLEM NO. 96. 82 
(N.Y. C.P.A. Examination) 


The Great northern manufacturing was incorporated under the 
laws of the state of New Jersey, February 1, 1899, with a capital 
stock of $10,000,000, consisting of $4,500,000, (45,000 shares 
of $100 each) preferred 7% non-cumulative stock, and $5,500,000 
(56,000 shares of $100 each) of common atock.On the same date 
$2,000 of the common stock was subscribed for at par as follows: 


By John Smith, 2 shares, .¢sesvees eo BOO 
"Henry Brown, 4 shares,..s-eserce 400 
U  Jonne Dag poe Shared), .. san cea , 400 
Henry Hodman, S shares; sueeees 300 
“Wie odman, 7 shares, ..iseeb ave 700 

TObAlL peer scccccrercsveres $ 2,000 


On February 4, 1899, these subscribers paid in to the com- 
pany the amount of their subseriptions, and stock was issued to 
them. February 15, the balance of the authorized capital stock 
of the company, both preferred and common, was issued by resue 
tUUCLOn Of the boare of directors, to John Mayacott, for and in 
consideration of $750,000 in cash and 12 manufacturing plants. 

An inventory of the property purchased, made by authorized 
representatives of the company, resulted in the following apprais- 
ed valuations on the various plants and the stocks on hand: 








CBEST Se a SS ee ~ 
FACTORIES 3 supplies [llerchandise {Real estate| Buildings wach igery 
Sry ae .|$ 450,000 |$ 95,000 j# 195,000 1% 20,000 |$ 98,000 
eee ie 211,000 44,000 130,000 10,000 84,000 
Bt eetele tial 495,000 38,500 475,000 11,000 62,000 
POL hs 304,000 15,000 924,000 13,000 48,000 
Pa 171,000 32,750 184,000 ; 14,500 89,000 
ce See 86,500 81,000 60,000 17,750 26,000 
eae t pds 47,250 44,000 30,000 32,500 34,000 
ee sale 98,000 35,750 20,000 14,600 62,000 
ae ae 101,250 11,000 10,000 17,200 11,000 
De ete sis a 37,000 13,000 11,000 19,200 35,000 
es ae 346,000 49,000 14,000 75,000 71,000 
epee 121,000 67,000 37,000 34 ,'750 44,000 
Totals,. }$2,448,000 | 526,000 | #2090, 000 {9278,500 |g664,000 





ee 


Open tne accounts of the company so that the result of the 
operation of each factory will be known at the end of the company's 


164 


88 





é \ 
eel itcant 


2ae OU MUIGOAL ~ { | a a i , z 
{ 


000,002,828 Sne .voote evitsiumroenon XT 


00058 # 


avaevenetdbomgenueee b ~9od suiot 
seo vee he eg eeteia &, _ tambon vine 
arte one e * «ceo eds ¥ ,ianboHr oft 


accesee beneahaka saeueerer. 


woo ett of mt Bksq exoditosdue seeds eel 
ot Boveet enw Moose baa ,enoktqiveedue thers 
soodve [stiqaso besinoriive 


{dope GOL 7 





i 
a 
i 
i 
" . 
. fis 
i 4 1 UL 
re i hie. 
’ ; 


> wiasidet a0 |. 
to teuvome odd yusg a 


ont to somsted ont ,2L yrsvrdet meds a 


-yeet vd beveak eaw .mommos bas Seite Tsig dtod ,ysaqmoo ec to 


at bee tot ,.St00% 
~etoalq antussost 


.M nefol ot ,etotsetts to bisod ect To sotsul A 


saem Sf baa deso at Q00,087% lo moisasebienco — s 


hestiorten yo ebam ,beearlorwg ytxeqoiq ent To yrotnevil mA 


000, S852} 002, eNS4 


= en aed ae 


eaiercqs gntwoffe? odd mt bediveo™ 
:faed ao sadoote oft Sas eins 


eft to tfucet orld 


e'ymeqnos eft to bne or 


vyasqmoo oft to eevitasdneasiqet 
ta evoltey ond mo anottautey be 


| Letters: ) ar 
eros oam} SBAtPEtHS etatee Snonboctbhusdorell| pebtoane bes QeT AOToOAe ; 
+059 : 
000,82 $| 900,08 ¢] 000,aef 3) 000,8@ $] 000,082 G)...---0cA F 
600,88 | 000,0£ | 000,08! 000,52 G00, £19 [weswanes 
000.838 | O00,f£ | 000,e%D 008 88 O00 .ae0 i ladewaen 
900.83 | 000,8£ | 000,58 000,21 COO,08  deseseeus ; 
000,03 | 008,5£ | 000,98f | O8t,Sé O00. £0: “ite wneeee 
000,98 } Oat,"L | 000,08 000,18 008,98 ileal : 
. OOO, de 004 ~8é 000 , 0& 000, bd Oea, TS evee eae , 
O00 , 83 006, 2£ 900,08 O89 , oe : O00, 82 “een ewe ; 
o00.ff | 08,7 | 000,0L 000, if ee ee CEO 
O00 , SE 00s, ef 000,11 000 ,EL 000, : wvereyy Fk . 
600,f° 000,87 000 , Af 000, ¢5 600, O85 ee er ereg ; 
000 , bP Oey , dS O00 TS a ' i Bes,> one ql . 







000 , 020,34 


— 


tatty o8 Yasqmo 
'¢ te awomdl ed f 


dbOL 


83 


fiscal year. The books of the company are not to show the 
appraised valuation placed on the real estate, buildings, tools, 
machinery, etc., by factories, but in one amount only; and it 

is desired that the account include any expenditure incurred by 
the company for coodwill, ete, 


Make ovening entries in cash book, journal and ledger, cover- 
ing in full the above transactions. 


164 


Wt 
" 












as a iva i a a i tae 
’ i a oe. ia Rigs ne i. aa i Nd ‘ Y igh aa) «= | 
it a a Ee a oe ; 4 oni eel ,; yr aera ¥ 
hi 7 ee aK rar) rat hi My ae it ae iin aes: uF 
| er ok ae a | ) 

eel fo ) * nly? oy 


ee } Ny fi te »d 4 3 
; 4 Me 7 ba ‘ i" 


= 


vi 
al » a 
' 
Ay ; . io F i 
ip A a ») wt 
4 
i 
£3. 
4 they 
j 
a ] é 
i 
, 
« ; 





, | are: i ’ a ,o bid i: a. 


PROBLEM NO. 97 84 
(N.Y. C.P.A. Examination) 


The American gas light company had operated a gas plant since 
the beginning of the year 1896. For the purpose of acquiring 
this industry, the National gas company was organized April l, 
1899, with a capital of $100,000, and after purchasing all of the 
capital stock of the American company, issued $100,000 of first 
mortgage 6% gold bonds, dated April 1, 1899, due April 1, 1929, 
interest payable January 1, and July 1 of each year. 


June 30, 1899, the two companies were united by a certificate 
of merger, anc new books were opened. 


The accounts of the American gas light company had not been 
Closed at any time during that company's existence, and at the 
date of the merger, stood as follows: 














Land, buildings,...) | Cani tal oy area. »» $ 50,000.00 
Machinery,....«-..) $ 82,560,73. Bills payable,...... 5,000.00 
Maing and Accounts payable,... 2,679.81 
franchises,.....) Gas ACCOUNT Es vss «+6 157,683.53 
Materials and tools, 1,856.50 Coké accountuea sss 6,210.69 
Coal (including Tar ACCOUNGyewes ss 4s 4,500.54 
PHELCRU Tents 3 012 ar 47,540.45 
TGs @ Wis alk sie 4 0k 64 8 Di, obs to 
REDAAS jews ais 4 oe 0-0 135,872.46 
Water and other 
BOL LCS sla tied wie 5,369.39 
Superintencence,... 5,500.00 
Salaries (clerks 
and collectors),. 5,600.00 
Office exvenses,... 2,100.00 
VIB ULENOG ge a's aes © 2 1,455.00 
TAZOS pcucnnsecasive 4,297.410 
THEGTEAC ace aei se ae 1,450.40 
MAG os ab ois wees 2,051 547 
Consumer's accounts, 3,210.44 
Other Acc's 
FECCLVADIE, oc ne ss 2,121,90 
$226,074.37 | $226,074.37 
The intentory was as follows: 
eas bctala se ale Se hese Pk iets $400 
Bas Fae ae ee sracier. ra ta taels cae ‘ 150 
a ee Ves ee arsiaes Be 100 $650 


In acquiring the stock of the American company, paying 
organization expenses,etc., the National company usec all its 
Capital stock and $90,000 first mortgage bonds, holding in reserve 
$10,000 of bonds for improvements. 


164 


: o a . F : 
ta a gy 5 Lil : 
[aye y ee wat . 
4 1¥ _ } i 
$3 Fe Jon <a e Co 
" A Ya Aah? es . 
: st e wr 4, we ' ri ‘ 
z 17] 
<a, 












eonte Josiq sey B betsveqo bad yoeqmoo st 28g as 

' gattiupos Bo esoqivg ott tof .d28L a ee ’ 

e's Lier - bests; to saw YoAgmoD BAR ey leg bist 

$%0 ffs antesnowwd, tests dem .000,00L% to Latigas s 

) Dents to 000,00f% bevest Br nse trem eft to soo: 
a, ‘ying i Litqa avb ,@08f .f LiagA bets ,einod blog Rd 5 

Beals. «Bey rose to L fet bas .f Yisuveast eldayag, : 


eteolt isos a vd hetios etew aol maqmos ows oft .CeeL 08 ent 





sbaaego exew 2stood wor bra Tegt8m ee 
me Ss 
| need ton bat yasqnoo drigtl eag msotiemA edt Yo ednvoooa ont eas. 
eh eit te hrs sores elxe e'ynsqmoo tacit anit emtt wae ts Beeolo = 
: :ewolfot es Soote ,tegtem ot To etsh 
; : e 
Op. 000. 0S: 2 124 tldake see, latiqad (ose, 8amibi isd, baed 
00.000,a esavveeSidayad effia aF 008 $a 3 Ceeveceeeg Ytonidoam 
8.evs,3 +++, 9ldsysq etnvoooa hae enitsM © 
$6,080, TEL Soave v ec ge MhOSOS esd (vouee 2Oetdonatt | 
@6.0f38,.8 esesee sg tTNOO9D O09) 08,828, @floot Snn efsitetal : 
$2.008,% seoceeeeg toons IT cat gnthuloak) L809 
GS,083,. 7D aeoseencg l SHQlot? i 
f¥..883,.04 eereseseveseeg@Odal - 
ab, SV8,éL rere re wert er | > ony 
3 | sedio bae wets va 
Ge. 935 ,e secseovegbOhiogne = | 
00,.006,¢ owe HOME Uh Fak ; 
Te eioto) eettaiss © 
00.008, +. (etotool loo Bra 
00.00L,8 eee . 2oarecxs ao 8120 p 
2 00,éc),f sescesese SORE IUENL : 
OL. TES, 2 pe eeesesecnees ge GORBT aa 
Ob,065,f  ebecceseceg F BOOT i 


VS.£3S,S cone eeeras ee gO 
bd,0L8,6 «etourooos oc! qempencd 
| e'ooA tonto 















Oe is : $ ats reve, oidav isnot | 
BE. STO .9SS5 ; TE .2T0, 0828 


rewolfet ea aaw wiodmetak oft 
00h? POPPerirrirr rr Tre Te ee ie 


é O6L +t 0 ON ed ee Seas wemeD 
0634 22 am ch edie cic 4.5 || halal Mall 


gatvad yyascioo anottana edd to soo 2 ort 
att ({5 boau qnaqmoo Lanoital odd ,.9d0 .ecenog 
evisest mi gntolod ,.abnod osagdiom doxtt 100,,08% 
edcomovoramel te 


. 





Pea 
pss ie ds mers wer 


_ 
+ 


85 


Make the necessary journel entries to open the books of the 
new company, and prepare a balance sheet dated June 30, 1899. 


Also prepere a profit and loss account showing the Gun aA 
ennual results i: the operations of the old company. 


Ref Py 9-1, 


164 


a to sean eek 
1008L ,08 saute 





PROBLEM NO. 98. 86 
(N.Y. C. Pe A. Examination) 


he Smith brewing company with $1,000,000 capital stock, The 
Young brewing company with $500,000 capital stock, and the Star 
brewery with $400,000 capital stock, agree to consolidate as the 
Universal brewing corporation, the new company to buy all the 
properties of the old companies, at a valuation to be fixed by 
appraisal, payment therefor to be made in full-paid stock of the 
hew company, the old companies to pay off their own indebtedness, 


The appraised values of the old companies are as follows: 





hee spr ikaempennnst cee tepineymreememncrresiagt easement ninipesintecet settee wkemnihe—nmeceenintonttics Riana immantis. inant: ansehen 
Seen pea eN Tw aaaap Mma eRSESTIESETen haw, ee sk Sota rete SLT eee) CASAS = ete Sata SSN | nnee eee prepara porte engep aapaaer caiman peace ARES GADENINSTIT 


' | Horses | 
+ Bills wagons |Office 
jreceiva- | and furni- 
harnessi ture 


















buildings Cash 
















Smith, | $680,000 | 390,000 $15,000:1510,000 | $4,000 |$ $1,100,000 
Young,} 327,000 | 160,000} 3,000; 6,000 3,000 500 , 000 
Star,.| 126,000 71,000}; 1,000! 1,500 200 , 000 


Total appraised value,.... 





leeaieeneeteaeh 








&1,800,000 


ees 





On this valuation, the Universal brewing corporation issueéu 
$2,000,000 of stock, shares $100 each, which was divided pro rata 
among tne old companies on the basis of their appraised value, no 
fractional shares of stock to be issued, odd amounts to be paid 
old companies in cash. 


Give journal entries necessary to set up property accounts and 
eredit old companies with their pro rata on books of the new 
company. 


At the time of the consolidation the ledger accounts of the 
Star brewing were as follows: 
Real estate and 


Butifiness cscs iweee (250,000 Capital, eaten. «<<... . $400,000 
Se ee ee eee a P4647,000 Bills Payedle, sss. 50,000 
2 a ea Sere ae ee eae 1,000 . Accounts payable,.... 51,000 
Horses,wagons and — 

TITERS , o6 sss 2 views 1,800 
Office furniture,..... 1,200 

501,000 $501,000 


Make the proper journal entires to liquidate in stock of the 
new company the liabilities other than capital stock, to apportion 
the remaining stock and cash, and to close the books of the Star 
brewery. 

Ref. ll» 5, 
164 













of ; ty “82 OW a 
ioe (a 


oc? ,Soote Lattgno 000,000.18 dtiw 9 ankweand 
nate oft bre  woote iatiqas pedi: atiw yeas 
eft ua etshtfocnon of oetgs .oote Lsttqas O00. 
edt Ife yudc of yaaqnoo wen end ,noltatogtoS Bf. 
Yi bexk? ed of aottsuisv 2 ts ,eetmagmoon blo oF To et 
ert to rxloode Hbiaq+Lfint mt ebsam ed of tote tejit trnemyad | 
steombesdo dat nwo tlodt Tio ys ot ac tnaqnos ae ont 4 eV 























pre a me 
| eo00F ay | prom 
lenittOl|enogew | effta | atates. 
| beet brs eavisoet] - i 5Sae 
{atoT | ouyvt i econmtaed ofc § ‘Aiead onntoftud | 





mT wean e MURR ET een ralgy too-man canna a 


000,001, 131 000, £8} 000,49 . 
600,008" "|.000,L } 000, | 000.8 | 000.8 
900,098 _ joo8 oor | | a00! 






000 ,0L8/ 000,817] 000,098%! 000.0883} .attme 
G00.0dL | O00, NSE I gmoy - 
o00,f" | 000,dSf |. . mate 





n00, 908 5 te Rate li neve Lishtee anneal peahatns faito?t 


merce: we 
pints See ne ears = Sasa 








yourel nots¢siogqtoo satweid [neievial ord (to itas lav a ictt ‘90 , 
etary otg Sobivib caw fo teiw wiose OOLG aetede yoot2 To 000,000,895 
om ,eulav beetertoqe tted? to efesd edd mo eginscmoo 310 Sng gnoms 
bisa ad of etrsyoma Bho ,berreek sd od Moote to eetare Laeaotsios.1t eae, 
“eflz8o nt eeiuagmoo DLo | 


brs etnuonos yirego tq qu tex Pr yisessoon solttes Larrvog ‘evita ‘a 
want ert to afood mo asat o1g tlecd dotw ec inaqMos 5fo tfLbeto “" 
eYaAsoros 


eft to iceieben regbet = Fae agtgebtl OaMoD ‘est Lo emit off 2A 
| :ewollot es etew yniwend sete 
Ses states Laon 
000.0089 seeesseghoOde ,fatiqad 000, 088% obese fo nbeg SQRERE EO 


000,08 | receees e GLCRBYBC eff{ra 600, 73S seecdeesc@uheneeeqe Gels 
000.2 ...e,eldaysq etasoo9A 000,f ese e ease newer seen gilBBO ae 
Ss efogeaw,ece tol i 
008. £ 0 abide pid ae ey WROM Ast ; al 


a4 reo a iasiabarahed sada. f 


000, £08¢ | 900, £088 i Ais 
sift to Hoote af esabiuptl ot esvitae Lenmriwe “nego: ocd ovat ieee 


motesoqqe of .foote [stiqss asit terto asititte If aris YaRqmos won © ‘i 
sete adt to. efood eft oxofo ot bre lesa iow yvoote ae 









PROBLEM NO. 99. 9” 
(N.Y. C. P. A. Examination) 


Three manufacturers, each having an independent business and 
wishing to effect a consolidation of their respective interests, 
organized The United States Manufacturing Corporation, with an 
authorized capital stock of $1,500,000, consisting of 7,500 
shares of preferred stock and 7,500 shares of common stock of 
$100 each. They sell to the new company all of their real estate, 
builcings, machinery, tools, fixtures, merchandise and supplies, 
in consiceration of $1,500,000, and agree to accept in payment 
$750,000 of preferred and $750,;00 of common stock of The United 
States Manufacturing Corporation at par. The vendors donate to 
the treasury of the company $150,000 of preferred stock and 
$150,000 of common stock to provide for working capital. The 
company sells $100,000 of its preferred stock in. the treasury for 
80% cash, giving a bonus to the purchaser of 20% in common stock. 


For the purpose of raising additional funds for improvements 
and additions to plant, the company mortgages its real estate 
and buiicings, as security for an issue of bonds amounts to 
$250,000. These bonds the company sells to bankers at 90%, 
giving as e bonus 10% of preferred stock and 20% of common stock. 


Draft entries to exoress correctly the above transactions on 
the books of the corporation, and prepare a statement of assets 
and liabilities of the company. 

Ref, Vaal, 


164 


















a Win AS ee so) 
Oe te AE, So 
| r an a 0 ‘ y 
n Fe! i 7 , 7 ' 
| RAL ale toa ee eae fans 
$A wee 0G 07 | Tes 
i \ ; . : : ) , ¥ or Ps oe 
{nottentmaxd .A +4 00 6¥. RADE, 
; a ax) hy) ee: 


“ban ceenkend taohaeqebet an ative foes ated 


068.8 to anitelenos Sbekaae bed ip to Moote Lae i 


.xood2 momnoo mi ROS to teecrowg ot of esmod s gaivig ateso X 


etnemevorrgmt “ot ebetrt fsnottthbsa gnietar to Beod tse es¢ 10% | 

stateo [ae ett eenagtrom yreames eft .taaiq o¢ emoltibds ons = 

ot etasoms ebnod to eueet m6 to? ytiaroes es ,gexsnioifud Bae 

eRe te etorinsd’ ot elloe Yosatios eis abood seedT .000,088¢ Pia 
«ioote2 mocero9 to ROS bas vYoote howreteig to ROL eunod a ee gntvig 

no enoltosene tt ovods ert yLtoertros esetene ot eotctne Sfetd 
ateses Yo #aemetate s ersqetg San ,motsatogies Sct Yo elood oft - 

! | eYaaqmos ety To eorstiidnds Snes at 

| | Sekt ston 


- 


bal 





PROBLEM NO. 100. 88 
(N.Y. C.P.A,. Examination) 


A company is incorporated for the purpose of acquiring and 
operating the plants and goodwill of pire previously indepencent. 
concerns, the authorized capital being $1,000,000, half of which © 
is common stock anc half perferred rosie The total stock and 
$100,000 are issued to the vendor, in payment of the several 
properties acquirec. through him. 


The vencor disposes of $200,000 of perferred stock to bankers 
at par with a bonus of one share of common stoc! for cach two 
shares of perferred stock, and he also sells $400,000 of common 
stock at 50 per cent. 


The prices pnid by the vendor for the three plants acquired 
are 1, $100,000, 2, $200,000, and 3, $300,000, each,of which is © 
payable one neif in nreferred stock and one half in cash. 


The properties are found to be in a "rundown" condition, and 
the company expends during the first year $75,000 in renewals and 
repairs to bring tne plant to a state of efficiency, Wh ay « } which 
is charged LO Tevenue, 


On a review of the accounts it appears that only &15, 000 -of 
gaia outiey was for repincement of current weer and. tear and — 
$60,000 is accordingly transferred to the Plant account in the 
proportion of 1, $30,000, 2, $20,000 and 3S, $10,000. 


For the nurpose of determining and separately stating the 
intrinsic plant values and goodwill after the additional outlay, 
the properties were appraised under four general divisions and 
the results of the apvoraisement were as follows: 


I IT TIL 
Meee gu a alain Rl On Le eee oes «©  25,000 §=§ 60,000) $85,000 
ee re Teer se BN dere Vata’ Soule 75,000 100 ,000 175,000 © 
Ste eres teres ee te ele cars at roan a 2,000 5,000 7,000 
Ree iet aa eae ste 4:9 Nae? ae 8,000 18,000 25,000 


AEA eG tad davde see.  SLIGOEO” (B1SS, 000+. Se92,000 





Frame the journal entries necessary to open the books of the 
company in accordance with the abave statement, 


Ref. e1l-4, 

































nN r% i i - 
‘ye ity 

Mike. i i ye 
y ¥ , 


ge qe “oor .om wae ye 
| | (aobtantnaxd hs 


yom anitiupos to osoqiv¢ sit tot Sets ¢ 
Snoedasqehbat yletotvesq sous to These? 
doit to tLad .000,000,f3 anted Istiqno ys 
- Sera stoote Latot art piak bowietteq tied oan 
fexavea oft to sromysg atk oe oct ot & 


; ee)?! dgvotit ; 


etaiuncd of foote Howie L19q , to 000,0084% io acatnlae 

ows M990 tol loota sommoo-lo Saere ono to eunod.2 | 3 

sormmoo to 000.0082 elfoe oele ad bas aah” hoxi0e7 vq 1 Rececndt ae 
«tn09 nog ¢ ood. si 


bettupes etaniq cont ont t0% -wigal s ont es se on ted 
et dotdw to dose ,000,0088 ,.& dna etn 
efead at Lad sao brits Iaote (Sail var al tind BLO ole \ 


‘ DAA. nottibaen "rerobasser” o mt ed o¢ Snwot sta soldasqora neers 

Bas eLewornon at 000,208 teoy gett? of¢. antush eoraqxe yorqmoo. eat ‘ 

Hoidw to {fn eyousto rite 10 esate 2 oF tantq o's qanind o¢ evinqes °. - 
eounevet of begtarto bad me; 


‘Yo 900 anh yino tort ensodan: + edmuooor oft to wolves 2 n0- ; 
bar thet Sar tnew tnettue to taemeertqger tol eaw yoltuo bise 
aft mt fnuooon tact ont ot botroteantt yLambbtoocs ef 000,08G 
mas .000,0f% ,& has 000,080 .8 ,000 084 ai 10 soksuogetq 
oft antirte ylodrisqea San yoinimteates Yo eeogiue sdt to% ! 
 ayefdvo Lanottthbs oft wosts LLiwhoog bua eeulev taniq ofeait#at : 
Heo enoletvth fexenes sv0ot toon boetorgan etow eeltiegotq ort a 
rawolfort os etow es edt to rnin s oe 2 


* 





TTT tI of 


LR EN RR ORR ITER UR ~- 


000,48 3 006 , 06 % 000,22 Fs vacb aw vip iba ergo eae 





000, aTL 000 ,.00L ©00,c¥ eee ee ee | 
000, 900, ¢ 600,$. bes bees G0 Nas 80. bade eee ada se 
060,¢S 000, of 000,86 Pre eeeneescereeseeereeeeneneead 


OOO,Se8$ 000,289 000,01f3 a a 









eit Yo efood ort mono od ytaveenen kolttne Lone 
stnomotate evods oft. Astw oortal : 





PROBLEM NO. 101. 89 
(N.Y. C.P.A. Examination) 
The composition of the values of the books of the three old 


compsnies absorbed by the new company as stated in the foregoing 
problem were; 





Assets I IL ¥II 





PPOPerbty Old, .cceesceccceccccsse $80,000 $163,000 $282,000 
BOOK Accounts, nok ehad, vse. vees's 1,000 3,000 5,000 








$81,000 $166,000 $287,000 


Liabilities 
Bills and accounts settled by 
ICY CORTON a a ss 0s ae a% en, . $49,000 $100,000 $189,000 
Re eis Ws 6s 6 66 ¥ bins oe econ 2,000 6,000 8,000 
SS) tle tcl ll. S04 ae laa ea , | eo Cum 60, 000 90,000 ° 


#81,000 $166,000 $287,000 





Frame the journal entries for closing the books of the old 
companies accorcing to the above stated values. 


Ref. 21-5, 
164 





















88 


boo seit ext to ertood edt Yo pee 
anne ont mi botate aA ‘Ses wor ort 


Tig 
020, S883 


.000,4 


re 


on0,Tesé 


—— a 
Re NA emma 


000,082 


900 ,.0€ 
000, Tes% 


ee 








LOL OTOL ON 





—~ A 


106 9H 





bio ofF To exood aay gnteols 





sot peepee ry 
.29uteav hotete svods See re f rT 
i @ evad y u%, a 
; | Wty A ef i 7 cs as 
0 7), ee sie be oo 
oe : a 4 siphh 
} ROL eae ut . My ‘@) aa ni fates 5 ny ES a i, 
oe vib, ul) iy, “iN oe 
i! _ home 
f y oh ——F, 4 
\ ) Jha iy ) 7 
: | (bn plese veh 
4 P hi Py i. don? é, Y% co " a 
; i 4 ey Ani Wyse 0 .7 > 


| eee 
hd “perdtrroats a 
“ df boltdoe atayooon bas isc De, 

Sa ine et ee va 


Sat eens were et ( 


it 


was 
bth. ‘0! 4 









tktomwg bob? 


PEeeeCr Te TT ie 


Dae oul 


\ “4 


PROBLEM NO. 102. 90 
(N.Y. C.P.A. Examination) 


A corporation is formed with, a capital stock of $500,000 (of 
which $200,000 is preferred and $300,000 is common stock) to a¢- 
quire and consolidate three existing corporations cesignated as 
Ar Band C and having the following status respectively: 


Boolk 
Accounts Liabilities Surplus Deficit Capital 
PAS. Gros jun «GT Coo #$ 56,000 $15,000 $100 , O00 
Betine Ashen, 266.000 80,000 $5 , 000 90,000 
ean inna » 108,000 47,000 6,000 55,000 


$444,000 $183,000 $21,000 $5,000 $245,000 





See 








The several vendor companies contract with the promoter to 
sell their assets, excluding cash funds as above stated and in- 
cluding goodwill, at the following prices respectively, VALS sith 

$125,000, B $100,000, C $¥%5,000, paybale one half in cash and one 
halt in preferred s toc: to be issued therefor by the new company, 
which is also to assume all outstanding obligations. 


The promoter or vendor contracts with the new or vendee com- 
pany to acquire the several proverties SR) Se wopthe Lisbilities 
stetec and to provide an aéditional wor] fing capital of $100,000 
cash, and to take in payment therefor the entire authorized 
capital stock of the new company, out of which the subscribing 
incorporators and directors will acquire their stock by purchase 
from the underwriters. 


The common stock is underwritten by bankers at 80% with bonus 
of one share of preferred to each 10 ahares of common stock. The 
bankers are also to tale an adcitional $10,000 of preferred stock 
at par, as part of their agreement. 


a Frame the opening entries and balence sheet of the vendee 
company, showing tne costs respectively of assets, gooce 
will and organization expense on the assumotion that the 
terms of the several contracts are lmnown to all the 
‘parties concerned and form the basis of the initial 
values established. 


b Frame closing entries of "A" Company, showing cancellation 
of stock and distribution of proceeds of sale among 
stockholders. 


¢ Show promoter's compensation or profit for effecting the 
consolidation. 


Ref. 24-5, 


164 


Yo) 900 N02" to voote Iatiqss a Atiw boar ot 
“9 oF lusose common ef 000,0083 bua bet10tetg 
a8 botanales> enoitarogies gnttvelxe sonit etal 

. :yLovltoogesn eudate ene nial 


fatiqnd siolied  gulqrne gots ttidatd 
000, 0054 000, 8£8... 000,08 ¢ : | 
“O00 ,0@ 000,32 000,08 f ee ee id 
990 090,96 00049» 900, 7a 000,80f | et uate ook 


900, 28s 000,84 900, £8% 900,581 000.2000 


I et Nahin — mvt ee ee eM seen reno’ 


oF *tetonotq ed? att denies setargmoa: nObASV fenovee ont 











ent Oo béetste svoda as ebauvt dano gathbufoxs ,eteees sleds tfom 


A sstv ,ylovifooqeet eestiq aatwollot edt ds ,iitvSoog gatiulo 
eno ban dere ok tied ono ofedvag ,000,8F¢ 9 ,000,00f9 @ ,000, ef 
auneqmos wen ait yd tototers Howeel od oF sloese Rorie 191g ak: £ 
eetottsylido a i haat {fis one BS oF ons et ses amici 


Woo. sehrev to wea odd dtiv evar ntado %odrev to xotoworg: edt 
seltifidett eft ot stootdye podegydonrinye Ietevee oft attupos oF yasq 
000 .00L8 to Istiqeo gaidsow Lsmotdibes as ebivem of Sam Sedste 
‘heatvondus ottdne ont totetett troorvsd af exist of Gris ‘Sat 
griditoeduve oft dotdw to to ,yYangqmos wes edd To. Noote fadtgs 
eesdowg yd Noote thers at all Lifw anosoexks bare eosnr0qr0ac 
| Th » etod Ewe bets ont 


sunod dtiw &03 tn eteinad oi tab shred et Hooda monroe on? 


-ofT .xoote momaod to aortas, OL dors ot bowietewy to etendea ono To 


Moose vial alin, to 000,0L2 ‘Isnotst5b9 ns ele? of oels ets exedand 
_ a tmomeongs ttod? .to die as ying 32 


sehnov etd to foede gonnlad Brio cotitne: aninsqo ont oman nh 
003 .ttoeas to ylovitosqeet efeoo one gaiwore eVAsGmes 
ond tent moldcomees oft mo Semenxe aotinstaraio baa fiiw — 
| eit {ia ot nwom! ote efoaitnos inteves odd. to amet 
fateink oft to elead edt miot one beateoneo eeltisg 
| -bodatlidstee veuley 


motielfonnes antwote .yasqmed WAM 6 to aotttae anteolo orn g 
gaome oise to ehoooore ts notdudiite th has axoote to. 
: | oe 


ods Qnises"th tot strong no sotspenaqno®: 2 vodor 


ee 
ACW, ei 


tte 


tall Praia aay int dah 
i LA ES NG a A ea 










































PROBLEM NO. 103. ol 
(N.Y. C.P.A. Examination) 


A B acquires all the shares of the capital stocl of the 
Vendor Water Company, and in order to reorganize it, forms the 
Purchaser Water Company with an authorized capital stock of 
$1,000,000 civiced into 3500, OOO common and $500,000 preferred 
stock. Bonés amounting to $1,000,000 are also authorized by the 
Purchaser Company. A contract is executed between A B individ» 
ally and the Vendor Water Company by which the latter, for a 
cash consiceration, transfers to A B its property subject to its 
rene cebts. A B then sells the property acquired from the 
Vencor Water Company to the Purchaser Water Company for the sum 
of $1, 999, 000 payable $1,000,000 in bonds, $500,000 in preferred 
stocic and $409,000 in comrion stoc!: of the Purchaser Water Company. 
The Purchaser Company also agrees to pay all the existing debts 
of the Vendor Company. The boaré of directors of the Purchaser 
Company appraises the acquired plant at a valuation equal to the 
difference between the sum paic for the total assets of the old 
company plus liabilities assumed and the value of the assets 
acquired exclusive of the plant. The Purchaser Company receives 
in its treasury $1,000 cash from A B for 10 shares of stock 
issued. 


Mrame the opening journal and cash book entries of the Pure 
chaser Water Company, and prepare the balance sheet of the Pure 
chaser Company from the entires, : 


The balance sheet of the Vencor Company on the date of the 
transfer was as follows: 


ASSETS 

PAGS trartlesuitecncies thyas's shuteig abated <i Pei oe Melee, OO 
CART gy etermanse’ <taet, lec Os Ue eee 17,000 
NOCGR  PECGLVAOLE y uit bie ye 6 64 oo ae ore bo 88 6,000 
ACCOUNTS PECELVADLE, cessecccecssesaes bee 85,000 
Materia le: 30 SLOCKs 6s eesnaye ed Aes ‘ 35,000 
Unexpired insurance, ecercevreverevvee tats 1,000 

Interest paic in advance on notes 
ii VOLTS © pe end os WRT ATelars » Wee a fete ol Yo WOKE F 3,000 
Trust company (ceposit to pay coupons),-. 250 
Stock Of GUNEYr GommariGsy.«sess se re ___ 80,000 
POLL BROS LAs yy dara s pied oo gutel eee 400, 250 
DEDAR vigtew eats te + whew ews CR A eae 2 5,848 

ROVER ewe ds hed. MeN. BLES Mt ae ee $1,484,098 
CAPITAL STOCK AND LIABILITIES 

CB) Cy wee eet Ray Wate ge piievgin secs n 6K eee Hh, GOO, OOO 
BOOMS, so mW aang’ We a vie sien sis 06 oop ig 2 bbs é edie 200 , O00 
POS DOVE ie ee ribie ews kk ed es 0 8 8 tw a ete 150,000 


TAL hd es Fa a ha on > By. i . | cag 








































fe ook BOE Olt UETAONT 10 i a 
(nottsntmexd ATO Xe) 


att to sisvote Isticso ect te so-rade/ Mt {18 eexttupos 4 A 
edd enriot ,¢f ssinsacoot ot tebt0 ak Bre , Tasqno’ Bacon one 
to Hoots (atiqse Desfrorftvs as dt tw yoeqned sete | 
herreterg CO0,0022 base aommos 000,0088 oF OFmE SHEDEVES OOO ,000 . £7 
sit yd hosttodtus osfs one 000,000, 1% o¢ an a | 
ebivibat @ A moowied bedvooxe ef dostén6e A sy¥nmaqmod teesdotwd 
a tot ,tedtel ode dsidw vd yasquoed tet¢av! ‘woneed edt bee re : 
agt og soot due yir1scong esti G A @t steltenaty toltatedlenoo | 
adt mort henivpos yoreco tg ott effec medd a A eddies 3a: 
mye ont tot vraqmod. rota “sesdotwd sft of [Priory ies 
hoxretexq mi 000, 0088 <ehriod mk 000,000, 12 6 idayac; 000, 22 ayy 
“Wereqnod tesalv nocantotsg oft Yo sipote normoo ab 000, 0228 et, ent: a 
eddeh gutitetxe oft [fs ysq Ot soe tgs oefe yasqmoD teecrowd efT ~~ 
tocsiow ed¢ 2o erotoersS To Besod aT .y¥yteqnod tobneV end 76 8 8 — | 
ect ot Lsupe nolisuisy 8 te gasigq boutupos ent seelaiqqae ynsegmod 
5L9 sit to afeers Latost sit not Sieg mye ort noowted soneteTTIdS 
ateces ef? to antilav odt Bae bempees aoktilidell exiq yasqmos 
eavisost yragnod teesdoiwd ef? -.taaigq edt to evieuloxe betiupss 
doote to eertsie OL tot & A mort’ deso 000,f@ yiwesstt oo e 
«boxveet 






ety oft io getudne Mood eso has Lattses, cmt edit smatt. | ; 
“wit eit To coode eonslad ett sisacetq bas .vnmemed sede tesado 
snorting etd mor? be ak teeerts | 


oft to esah od¢t no yrisamod sobre ond to doode oonalad ext | - 
:ewollot ea eaw tetenett Wl 


: OTASLA - “s 
000,c38,, £¢ ‘a sur bic o's de SUSE Is Sa ae > ae 
000, FIL POs et ones we HNe big Mane eNiele 6d WieeieegMMO: | ie. 
OOO, 8 teres ererereeeneneveas e Sidaviszey Beton — Pay - 
000,28 i  —« , nevineutsecccvnevess SLGBViedSet sinioood = = 
000, dé J Scere cdn set ewan see NOene ot es{lsineseM . 
000, f Cover eseesseeweuseve s SOMES DSerti¢gxent - 
7 ecton mo sonavba mai Siag teetetmI 
000, 8 - : Cesare ener eres een steeeee seen OlOByag | 
028 + y(etoquos yaq ot tteoqe>s) yasqmoo sesrT 


000,08 renteeescane ewe BOLT BCMOO “edtto to meets 


O28 ,082, £28 crore ssemesee eee wg Meeees. {stoT 
883 ,6 eee Ee PPE er eben! SRN Sree : 


R00, 502, L¢ ‘ruprsese chy Sinaia ae aaa 


PAITIIIAALI Ma HOOPS TATTTAO .. orn 
000, 900 8 .. ts «ht ha oe eee Lstiqsd 
000,008" ++ bcos 4 sisi Sih waeiaiaant ss += ani aes "i 
000, 0é8L TPM tel ght 5 ka da 


A ats 





93 
MAUROMNS DAUAGLO, asi. cscuesetevas saneesrees & 706,000 


Meter GCOPGsits, ... wns as core etn «ie 2 aces “ 1,848 
AGGruec interest orn bonds, cscs se sanevsgets 5,000 
POUNCE DATRD1LG » «0 0.c08 eniecnaene simure aera 250 
peecrve Tor bad GCHUS sc enceeeys de yee . 7,000 
Reserve for depreciation of plant,<casen- o« 50 , 000 
$1,484,098. 
Ref. L6—1 e 


PROBLEM NO. 104. 
(N.Y. C.P.A, Examination) 
CONSOLIDATED MANUFACTURING COMPANY 


several manufacturers consolidate their interests and organ- 
ize the Consolidated Manufacturing Company with an authorized 
capital stock of $1,000,000, divided into 5,000 shares of common 
stock and 5,000 shares of preferred stock at $100 each par value. 


The manufacturers sell to the company all of their assets sub- 
ject to floating debts of $115,000, divided into notes payable 
$65,000, and accounts payable $50,000, for the sum of $1,000,000, 
payable $1,000 in cash, $499,000 in common stock and $500,000 in 
preferred stock. The company agrees to pay the debts of $115,000. 
The active assets acquired are inventoried by the Consolidated 
Manufacturing Company as follows-: real estate, $175,000; 
machinery, $200,000; and merchandise, $155,000. 


The patents and good will were inventoried at a sum equal to 
the difference between the net cost to the company of the assets 
acquired and the above valuations of the active assets. 


The company received $1,000 cash for 10 shares of common 
stock, and for the purpose of vroviding funds for working capital 
authorized an issue of bonds amounting to $300,000, of which 
$200,000 were immediately sold as follows: $100,000 for cash 
at 80%, and $100,000 for cash at par, with a bonus of common stock 
amounting to $100,000. 


For the purpose of providing common stock to be given as a 
bonus the manufacturers donated $200,000 of common stock to the 
treasury of the company. 

Prepare the journal and the cash entries for the company, 
covering all of the above transactions, and prepare a balance 
sheet of the company. 


Ref. e7=-5,. 


164 







= Pt 





y fA) A , 
see gO idayag 
avessevereeeees ia dew btisod9 
tS aw eh gee no teotodat beutooA 
oe@és ck dalee UWiae's 00 0 dGmEEEee anogy 
000.7 eh hctney ae deb bed tot evr1929h 
600 , 08; SILIDI (daadq te, notsakgesqad 70% ewrones 
ve) te , i mane 2 4s Agar ag ith 
Shi | ne ee ae NS gle Tile 
SOL OW MRIBORT | | 
(nottectmex® .A.d.9 «¥.M) * 
| ; 
YUAINOD OUIAUTOATULAM AETAAT IOZUOS 
| ‘ : 
agente S08 eteerstni sted4 otshifoenos eromiosivnem f[seteveo a 
 hestrodtes ma dotw yraqmod gniwsdtos tune’ hotabifoenod eft esi - : 
comnos to eevarte 000,8 ofal hasiwrb ,000,000,[% to aoove Latigss | 
eufev naq dose OLR ta toote heriezet So eotate 000,28 baa toote im 


.dye eteesen thedd to [fs yasqmos ett of [foe etouwwtostoaem > a 
e{dsyec eestor otnt bebivib .,00O arly to etdoes nattsaolt gt 
000,000.19 Fo me ait vor ,000,0ey oldayvag etevosos Ore ,000,30 
nt 900.0068 bas aoots nosmog mi 000,C@2@ ,tfeso at 000,f¢ sidsaysq 
000, 2f18 to asdeh oft ¥sq of ese tga yascmng eat eHpote bowietotG 
hetshifoened edt yd Settosneval ets oetivpos etoeas evitos edT 
-O00,aTLG .etateo feet -=gwolfot ta Yrteqmod itutoaTunism 
.000,28L% sel onsiorem brs :000, 0083 ,yreatdoan 


ot fsspe muve 8 38 Bertotnavat stew ([Lkw Boog ota etnetaq ett | 
etoces ait to yasqmoo edt o* teoo toa ent aeowsed eonsistith edd — ? 
_eggnas avitos ot to enotteslay eveds edd bas betivpse yore. 


nonwes Yo eetade OF tot deso 000, [@ hevieset yasqnos ONT: 555 
fetiqes aaivitew tot ebawt gribivoig IO s2o0q TG eit tot San ,to0te 
dotdw to .000,008¢ of aattmuoms ehrod to event me bos itodtya 

fees sot 000,001% :ewolfot es biee yilotetbemmt Sei6w 600 ,0088 
usote nommoo to entod s ddiw .ts6q #2 deao %0 000 ,OOLF bas ,*08 ts 
| | —,000,0013 of gattavoms 


= 


ees novig ed ot Hoods sonmos gethivery To eroqiug att 04 | 
ett of yoota mommods To 900, 008¢ hersnoh erotusostunam oft eunod - 
| emi  waggatoo ert Lo yiwesotd 


ae = 
—_—- 


~yaegnos eit 10% eefisa9 deso odd bar teatvot ed? ersqoTd 
eo9nasisd e stsqetq Dre ,atoitosennit ovods edt to Ife gniievos 
| yeneqnoo edt to foode = 


* 





$df 


PROBLEM NO. 105. 93 
(N.Y. C.P.A. Examination} 
THE RICHARDSON ENGRAVING AND PRINTING COMPANY — 


The Richardson Engraving end Printing Company, a corporation 
having an authorized capital stock of $50,000.00, owned by William 
Richardson, $10,000.00; Silas Johnson, $15,000.00; and Thomas 
Aacten, $25,000.00. | 

The plant was destroyed by fire September 23, 1908. All the 
books and records were saved exeept the sales records,which were - 
not written up for September. The. insurance companies paid 
$28,000.00 on the plant and $7,000.00 on the stock, which was 
distributed to the stoctsholders as received in proportion to their 
holdings. Cash was received from September sales amounting to 
$13,500.00. On September 30, the trial balance disclosed the 
following condition: 


COGl tee eC ioe. Waaes Coven dens anaes a oe ee. fe A #$ 50,000.00 
LOG ee ee ea we eB en a ete cis ecg Ree $ 30;000.00 
Stock on hand June 1, 1908,.....++.-6-. 8,750.00 

PCCUGRUG PCOGAVEUIG, saunaeesnacere ss ees 19,640.00 
BOCQUL ee WAP RLS pou Gale bills «ig Peete W oh dele s Lh. WOU. 00 
ere UP me Pore Wat CO CULS, poe wid oly wlelite els 1,250.00 
TES Bee BO FO IMGTIG gis c 0d os Bike a RGR 28,000.00 
COSTS sass 68% Pate hs PORE a9. 4 aig +s > ale. 3,900.00 
BRRVAVINS ) cen men «6 Pe eee Ae ee 77,600.00 
PINGING ew «a's ee Rie! Ob se MPPTR ah CBT aa ele ae odeet rte ee ye 99,350.00 
September sales, not allocated,.....,.. 24,175.00 
MERA Ten 3 Oo PUNE S SOR i ce vaiwisioiy nee 58,800.00 © 

WE RSS re ee re NG pwee rn iete Agr AN 150,180.00 

[Yah Para Lear Oe sla We ek a eee Rsdvavartthberasitntas sigs 1,800.00 

LAL ey Sra ibal ae takatoh stokedodansaenens pois vowes sue) eye ajese Big Coe OO Je 

POL Peo 2OSS (SUrBlus yp. 3 ss oo ¥.0.4 00. 8)5 : 855.00 
Wie Pte RECAP OSOG, o's eo vie o¥ dks oe 8 eis oie 7,000.00 

Siias JOHNSON posse eas cee wees re re ra ye 10,500.00 

Thomas ACTON, .secercerevens « dakelerats anne 27,000.00 


$8293,820.00 $293,820.00 


fhe accounts receivable realizec $18,320.00, and the liqui- 
dation expenses were %1,850.00. The stockholders turned in their 
atock for cancellation and received their proportionate amount of 
caoh. Prepare journal entries closing the books of the core 
poration and a profit and loss account, : 


Ref. 29-6. 
164 


oy 


ey Oe eee tom 


“wnasuoD ours mk, Moe 













Molteroqto a 8 .Yaeqnod gnttnied bas nive 3 
MBLLLIW ed borwe . 000,08@ ta Reve ‘Bilqss be 
genet? bar 200.000 “ace Moearot este 100,00 


eit [fA .80CL 23 rodmotqas ety ws beyorteeb | aie 
+ Seo dotriw, ebtoso% eafse ed ote ood A 
Steq eolneqnios epnetwenk’ et? ' . Tadhedgee Be ps me 00.000, son | 
eev riottw loose ett no 00:080, TG Sas taslg edd mo 00. 
tient? od mottroqerc wt beviesey ee) erebloctroote aor ot betudiateth F 
ot omitrvom esfasg t~odmetqees mort Sovias a . ‘ 
edt hoeolaeth oonkt i Te lind ,06 bans 3 i 
Le Selah ganeal tot i 
OF .000 Oa 2 oa a Se re erie uae il: fattqsd at 
OO. OOO 08 "OTA TE ADIDAS Aas sth sbeas ds sepemaueuane | ah 
Colowover cc iipetgeaOMR Ad Sei anit ap isote 7 
. Ob9 OL Hen e eee weet ene  PLOBV LOOT etaroooaA 
00.008, ef he 04 seh shige Siping 4 ea yp dnache 
re toh beg 4 | 















00.088, £ mes eat hdd edi. 
00,000,898 Mir iabiheiade ich id ccs 


00,008 8 “ee me ie . ial o8. oe. se vee aes tpeenegs land. 


sso Se sae tina 8 9 diel As 60 amma Sd. | 


7 3 
pepe 
a) 


o> 
© 
> 
2 
oO 
ey, 
is 
“a 
wg 
* 
# 
> 
2. 


fr ah eye ‘ a3 Ne | "ayia B 
OO SOS" ee , by ES Mn ke Be wea eam ea a eget 























OOs GT £, SS Bae ag ea eed » detnvoli a ton. (estar te me tey } 7 ~ 
5 00.008 « 4,88 De Se ee eee ane 8O8EMO Tue ert! Te aod ; wee 
Os Ost 108 TSE a as a aaa 
o% 2906 Oe : : Vinh ee Se 4 ale Aen 4p wiht o by eee aia 
|! 00.d@P.8 Mia TISTIMI SONS E OR A ae heh Oe hee obey yee 
00.8208 © 5 tote creme seen e eg DUIGINE eeol bra bra tttord 
00.000,7 Fes eon Me teeeseesesse qMO@Btsriots mofLin 
00.006 , OF REPRE MINUS 
RT ES AONE DT 09.008 WE Aer he dh ae ttt ane ‘ee its sti ; | semontt , 
a re ern meena ee ey ees acre Ae ite Che, "abe iy 
eitpht 9x eit bre 00. ote ate. ioaneaes _otdaetocen ef i 
SLO) of Senctert etolomloote ent 00.9 28,.£0 si0w eB Age 
to tavons efanotii0 oqoty thes Hevtesed baa ttalisonas st: eee a 
“oo sft Io Blood oft grteofs esktine fan otecett  .deag hy 
| ati) alain. bala — H8on a ‘Bie moktatog, i 


yh, 
a J oa 
x a4 Wes 
P , rir iA sn meu? cyt 





PROBLEM NO. 106. . 94 
(N.Y, C.P.A, Examination) 


The A Manufacturing Company incorporated under the laws of 
the State of New York, with a capital of $100,000 consisting of 
1,000 sharec of $100 each, all of which has been paid in cash, 
presents the following balance sheet as of May 51, 1909: 


ASSETS 

of (ot eget PRS RS oe ole On ae eae ae 2S 128,000.00 
Materials and supplies, .-..sesscrcacvencrcces 25,000.00 
ACCOUNTS POCCLVADIE aan s+ oc ee ee os jae gale 0'n 300 , 000.00 
Plant and buildings,....cceesees oes oe Wee 8 400,000.00 
$ 850,000.00 

LIABILITIES i SG OR aR ar ae 

RGCOUNGA DEVADIS POOP Ses ee ee ee ee es eevees Pe Os OO 
CaPLtal pie Oa's Has ss PEG eee oe were hs RUM aT ET ‘: 100,000.00 
SUPNIUG cass eas A + «sit Sate . 730,000.00 


¢ 850,000.00 
Annual sales,$800,000, ar ee 


The B Manufacturing Company incorporated wder the laws of 
the State of New York, with a capital of $1,000,000 consisting 
of 10,000 shares of $100 each, presents the following balance 
sheet as of May 31, 1909: 


ASSETS 

Peaks. ged. Urs Lh ee PEO, Py BP Oe SE DOC Lon 
PATO tS GEM SU Tee, Gee il ee oe oe a's a Yates 25,000.00 
PECOUN CS POOCCLVAOL ee ewe ws ese e see daa ew eeaae ‘ 200,000.00 
PUA Nig decd jnicc tn besenabe bile wearin: 9 6 whats" ats tits totaal ale atatale 500,000.00 
OEE, Feietintata als i alenedicinbalatctetete:ste'ate’e ate eel ats ei etale 700 ,O00.00 

$1,475,000.00 

LIABILITIES 

pvelcla cherie cue 3 Led 6: Uy a Ge a Mahe whos « © WiS0,000.00 
GOPLtal, -cevessccccrcerccscanerascsnscenves ie 1,000,000.00 
SUP LUS 5 sees wee Be oo shales eee ba de eee wikis 325,000.00 
; $1,475 ,000.00 
Annual saies, $600,000. ) * oar guar aaa 


Both concerns are engagec in the manufacture of the same 
commocity anc Gesire to consolidate for the purpose of maintain- 
ing prices, but will continue to operate each plant separately, 
They organize the United Manufacturing Company with a captial 
stock of $200,000 consisting of 2,000 shares of $100 each, the 
members of the A Company agreeing to subscribe for 1,000 shares 
anc. to pay for them in cash and the members of the B Comoany for 
1,000 shares also payable in cash: the stock is issued to the 
following: 

164 













Be | ,a0f .om MITEONT a : 


90,9000 ,0d8 | 
ee : ,000 ,0089, sefse feucna 


Me es 
i Ay 
1 
M 


(nottantmexd .A.d-9 vu) yee 
Ta) ree: > re 

sotesxoctoomt yasqmod go bid Oa Tat si 4A 

to gaitelenoo 000, 00L4 so [atiqss a dtiw xoY we 10 9 

ad2eso ai Disc aeod ead doidw to {fa ,ciose oOLe to ders | 

-G00f ,fc yal to 26 ¢eoce oorelad antwollot eds est 

by ae lliet 


evseeak 


hr hati | 
ees 04-2" oe Pe *-* eoeneevee eo : od 
; ‘al aah =F > n aerey ay 1 


to ewel efit, tony 


90,000,as£ @ 2 = Does 


oc cle blele aiplete eine 













aiiqque bas ete 


stdavisoet & nOoOA 


00.000, cS e*ne 4 

00.000 , 006 econ een eee eee ee. e Pee os Vio. 

00.000, 003 ee CLL Leseaeend os eaRentee ois trald 
, se 


00.000,088 | be 
0,000,088 ecITrdyaall a 
oo e La ysg etaysoooA — 


00.000 ,08 core tee eee es CRE ame 
A .000,00L ‘* « eb ake owls ee ee 9, 2:5 pa cwnc gs adigsd | 
. RR Re ER in ier 7 Ne 
; a 


00.000, 06% 
ell nena 


beer peared 
to ewsl ent tobas boterogueont Yeaquey gatwutosturied & of? 
gnivelenas 900,000, L% to fsdicss ® dt iw itoY wel to etad? ocd 
goraled ankwollo? sas afnoeetg 9288 OOLS to eousie 000,0L To 
 s@0@L ,fe yell To 28 yooris — 


eTaeea | | | U 
«sue 829 AA) 1 Pel 


00,000 ,0¢ 3 nebast sheets © eat ~enevesee eo” 


ese 
seiiqque ons efsivetsi — ae 


00,000 ,a8 Ccwded a he Pe ORs © OE eT A ; 
90,000, 00S ee ay es ee Leet aeeeewenr a. edmayoook 
00,000,008 —  ecania use ae dbwe were r Oi8 T2000 F Oe aaue 
00.000, OOF ee ee ee wiaane cane) os aes 
60.000, 308, f¢ 
———— 


| i QuITIITGALs . 
50.000 ,0eL g PE Pe 
00.000 ,000.f coer dee Oem = Semen mae 
60,090,382 


90.000,6TS £7 
‘gmae oft to etutos Tuma att ak Sesser 
esistaiss to seoqtrd adt tot etabifoemos ot eiteo> 
yietetages tusiq floss etsrero oF euntinoo LLkw 
f[attqss 8 Asin YABGMOD gebiitoe tans 58d. | 
@rit fore OOL) to estsie 000,$ To gnitgetanos 900 
eesarie O00,f tot editoedve 9 ee yasqmod A 
tot yeacmod & odd to etedmen ofy Ss fess. 
et of beveet et “Moote end :leso mE 
; ee ee 


Comprising the A Company: 


C = Certificate 1 for 250 shares 
D- “4 2. 2. 3866 

Ee 5 tt 3 if 250 Hh 

TT cw " A | 250 " 


Comprising the B Company: 


G = Cex tificate 5 for 250 shares 
yq- G+ 8 -.BS0 se 
LI 4 i 7 it 250 
Mi me " 8 1? 250 W 


The cash is veid into the treasury of the United Manufactur- 
ing Company on the issuance of certificates to the respective sube 
seriperes, 


The United Manufacturing Compeny purchases and pays cash 
for the stock of materials and supolies of both mills. 


The United Manufacturing Company rents from the A Company its 
plant and agrees to pay an annual rental of $90,000 and in addition 
thereto will pay tne officers managing the A plant an annual salary 
of $90,000 for their services. The rent for the B Comvany plant 
is agreed on at $60,000 and the officers are to receive an annual 
salary of $60,000. It is agreed that all additions to the plants 
anc. all repairs anc maintenance are to be paid for by the United 
Manufacturing Co. 


Operations of both plants are continued and at the enc of 
the fiscel year May 31, 1910 the balances appearing on the books 
or tre United Manufacturing Company are es follows; 


Coes a ee PET de dase wesceaewes §E00,000,00 
ACCOUNTS PECSTVRO LO Vida wee va race wb ote nsebeas 200,000.00 
POEUTEONS Cole User hana ed eevee e cvs re ees 60,000.00 
AMCGUNTS DAVAO LS sce ieee neues ec aeowadasss cores 160,000.00 
CAgees BLOCK y04 dss Heals sim Mae ne ales Pe nes ewan 200,000.00 


The trading transactions of the respective mills are as 
follows: 


A COMPANY'S MILL 
Purchases - Raw materials onc supplies,..... $160,000.00 
ye ee ie ee ree eee ere ee 500 ,000 .00 
PAGGOCY CROGNEG zg cere sac cdreceevessadeuds ty es 100 , 000.00 


nepair anc maintenance of plant, esevcstecers 80,000.00 
CISCCE ORONO see owas eebevaces re ra Te 60,000.00 
eye SC) BGs | Na ee ee ee er eer ee 90,000.00 
eee We LATE OS eGkw +r io eas oer AE ene bas 90,000.00 


ER EG ee eer eee 3) rer a _907 , 000.00 


164 





















Si ‘) ee kee uN ie 
(wie 

iaeson TueeM hetiall ofe To yenots | edd dank blac et ce 

eccahell ev isneqeo% erfd of eossorttetes to gorareel “ets no 


Haro on bre eoento Tuy seeaquod gateutos'tunelt hesticd ot | ae 
fim ddod Yo eotleque fxs afatcetam to woote elt xo LPP 


lett vragmod A oft most etrrat yesamed gatuntoetunsit Hotia exit a ay 
mots inss mi ors 900,008 to [stnes fanutins ms yaq oF BeeTgs bas por | (an 
pists 6 fLeunns os + Le A edd gatgsass sisoktto art ysq iftw otetede 

sala yaremod & eds ‘sot tae off eg guid 8 skorts j~o% 000,002 to. 
fauens ma evisoes of O18 eieakTio ony bee 0090,0 » +8 0 gebays ek at 

etnafq edt ot enottioba {fe tens hose ef 3t° 20 008%. To. 
saidihares att yd tot Stet oc OF S18 sorecotiter ‘S08 eats ea If y oa 
99 Ba. ies 






to Hae ort ta oes peuntinos Cg) ‘esnett shod %o esotis ; 
asfood ett ao gttiseqqs seomefed ord OLSL 4f% yan "A9v taney as 
ravollot es ete Yrraqmod gativtosignal Satial acti 


i 
« 


00,000, 0084 PTI eae Sa 
09 6000 ~oOS cesenbgebheavetstsbusemeq@seevenaes etosoocaA & re 
00,000,008 wens ecegedeedseebwssonsepauaseg Oe enotsisSa a 
00» OOO 4 00L ces cedsaesedsesceecseneegOhGG tag Guenuers i eee 
00,000 .02>.. 0,008 _ pinseesaensevesenaer@ursntnGs Qigua m pa aud t4 yh 3 ; 


ms ere afi te svitooqaen ed¢ ghts namasonsen a: gatserd odtt 


ert enoctot 


| i . co 
/ 4 ‘ fi A, 7 : ia! 1 


| adh etyuaaoosk on 
00.000,08f% ..++~,e0kiqare oa° aia tresen ean - Suan 


es & f 


00. S60 00S ecccen cst) shh se ERAS eee ee Ee See Mere es 

90. 000, 008 cecece ce (eb mewn seen San ene ~ 1OV 98 
00,000, 68 os ose ek +n Se taameen-eti as atae 
00,000, 08 , eer ee Se er “ 


60.000,00 ‘ err ye 
00.090, 0? eoencoeveccessvesp hee sass amen 
90.900, T0e vestensoeceasecqasoeaenass 





B COMPANY'S MILL 96 


Purchases - Raw material an@ supplies,...... $140,000.00 


Bae Sas one © ae 8 otis ih ee Ae ep Al ee Rn» S 250,000.00 
Factory EXPENSE yseseerecerererserarcrccsaces 75,000.00 
Repair snd maintenance OF Plant, .-.<ssperese 70,000.00 
Office GXDCTISOS Ss ce eeeenseeexe sche awepeeenes ©” 00,000.00 
nent or plant,.. awe wis & Puech eeWa nee ep *% 60,000.00 
OeTicera’ ss aye as as oss «9 ck oun 60,000.00 
POLE sss» © ensien ue ast dues ate.» ote te 6 6 ROMER alae 7'78 ,O00 .00 


The stock as of May 31, 1910, consisted of | 
Materials and supplies - A Company! S Wil, se. @ 10,000.00 


Materials anc supplies = B Company's mill,..- 15,000.00 © 
Labor due, not paid = A Company's mill,..... 5,000.00 
Labor due, not paid = B Company's mill,..... 10,000.00 


Open tne books of the UWnitec Manufacturing Company; prepare 
balance sheet as of May 31, 1910 and consolidated trading and. 
profit and loss account showing profits for each mill. As the 
mills have been kept in verfect repair no depreciation is to be 
considered; outstancing accounts are considered good. Provide 
for-a dividend of 10%. . 


Prepere percentage table of each mill, showing to four - 
(4) decimals the percentage of each of the following items 
against the total cost of production: 


Materiels and supplies, 
Labor. 

Factory expense. 

Repairs aand maintenance. 
Rent of plant. 


Ref. 30-3. 
164 


























aah ot ymaTMOo a 


00. Hao, 9ai8 ‘ . ave gtd tiqqga ane. Dy 5 
00.000, oas ctor ve tte Se 
00. 900.21 fare tee aa’, J 
90,000, 07 a*een 4 0ae eee ere to Sons oA, bar 5 
00.000 , 06 Vacccsctdecesouesue sauaceine = eee wa 


- 00.600,03 . po uevces se epee es Spee See eS eee oo 
00,000,035 wonssee ss |e ee ee) sly 
090.000 art crecseccarneegiogenaun sdae aye sss <5 84 eer, 


t0 sesetenoo “LOLer <f8 yeti to 2a xoote or 
00.000,0£ & «..f{fims tyeeqmod Ae eotiqaqse Soe efstcotem 
‘Q0,000,6£  aeeiline ' yreaqino9 @ e esifqque ona efskuetem  .¢ = 


00.000,8 err? \ vtteqrod Aw Steg tom ,eub todel 
00.000, OL err a ea ow blag tort «ont todel C Pi 
aa “1 hs 3% a Cc 
eracetc pyasgtod gnttutos tonal hese ads to exlood ont ‘aeq0 ey 
tate girthext botsStloamog baa OLet gld YAM to 2a seoorde eonsisd a) 


44+ eA fits doss tot etbtoaq aniwose toayoooe 2eof Sia trtow 

on ot ef notsaioetqeS on stage jootasc mi tgey mnoed eved alfin NY 

gitvord «boon bowsbbenos ets etavo00s gntonstesuo ; ;bevebtenoco mee 

| . ni 2 80L to baedivts & sot aon, 

wot oF satwode gilim tose to otdat agsd oot? eregqerT - le a 
matt gatwolfLot erlt te dose to aust rao teg srit elsrtoob (a). ) 

iMorseubotg to tes fatot edt teatege : 


seotlaue bas. elakros alt, bat pe, ae a 
etodat ks Cid a oh: Sa ee 

«Senoqxe yrotont © alts — a 

' ,ooneretniem bass. BTIRGOM on 
aia to. anaes rp el. ta: 


PROBLEM NO. 107. 97 
(N.Y. C.P.A. Examination) 


The Sinclair Trading Company has been granted permission to 
dissolve its corporate existence. You are consultec about the 


procedure of closing its books and are given the following 
information: 


An abstract of the ledger, on July 15, 1910, cisclioses: land 
an¢ building, $30,000; plant and machinery, $50,000; merchandise 
inventory, $22, 500; notes receivable, S10, 500; accounts receive 
able, {16,800; contingent fund, 315,200: mortgage bonds ( on 
machinery and ‘plant) & 5,000; acerued interest on the mortgage, 
e523; notes pavable, seo 000; accounts payable, $28,000; capital 
stock (authorized, issued anc outstanding) $50,000; reserve for 
depreciation of plant and machinery, $9,500; reserve for depres 


ciation of builcings, $1,950; reserve for contingencies,$15, 200; 
surplus 5798. 


There is a balance in the bank of $12,500. 


A report rendered by the secretary of the company shows the 
result of the realization as follows: 


The mortgagees bought the plant and machinery for $35,000, 
peying cash for the cifference between the amount of the mortgage 
anc the accrued interest,aand the purchase price. The ‘land and 
builcings were sold for 33,000. The inventory of merchandise 
was Cisnossd of for 320, 000. The notes receivable were paid; the 
accounts receivable realized 15,150 and the. securities of the 
contingent fund realized O14, 700. 


All notes oayable and accounts payable were paid and the 
expense of reslization anc Liqui@ation amounted to $3,200. 


Prepare (a) all closing entries for the dissolution of the 
company, (b) a statement of realization and liquidation showing 
the amounts cistributec to the stockholcers,. 


Ref. 350-6. 


164 


' gethaadotem 2000,028° yv3eats {one bas taafq ;000,084 hey . 
200 








TOL .OM MEIGORE 
(nottantmaxt .A.%.d ts el 4 
ot soteeimied betuats 000 aan yersaqmoed ant by 


efd tyods betisenon o1s woY ,eoretetxe sist ont 
yaivoifolt erft nev i e13 das exlood est aatae 


y 







Mant :eeeofoetS , Ofer r) vigt mo ,texheol odd 40. ee 







aviaos1 ednu0008 ,OLy ,eldsviosst eoton i s eVIOs: 
mo ) ebsod 2 season ,00$,af£:) ,Sewt tusgattnes ;008,aL9 , ; 
eSasetrom on: no t29: sett Dashtoo8 3000, 382 (tealq: ‘tan vientdosn 


Ledices 000,588 oidayaq etaugcos 1000, WS: ,ofdeveq eston .8ao 
Tol evrere 2000 , 08: (gat Sasteduo eve? pevect dbestioitus) Moose 
estge5 101 ovieset 002, Q3 ,.Ytentioam Has teat to mottetosiqed 
:008 2f6, setonenatsces tOt evtoset 060, f28 py 


SONS an elie 
.00¢,.Sf% to taad ott ak soasied a at etedT 


ett ewocte yasqmos oft to yistetsee edt v7 Setehaex S1rocet A 
sewolfot es motd¢actisex edt to. ae 


000,882 02 yrenidosm Bas sasla ond deiged esegegdiom ef? 


gasagdiom eft Yo tnvoma oft aeewtod eometeTtlds eft 10% deso Sg 
Ses 


er s eee ent ,soiltg Rewter ier edt Snes, testetnt beursse 
$2 Lonsovtern 40 yrotnevat ef? ,000,e8% sot Sloe sxew Ang isd 


edt <5 tq etaw efdaviooox sedon off .000,08¢ xo? to besoqets esw 


eit to eettianvper ott Dene OSL .aLy bes t Lae eldevisoet etavoosa 
‘748 “JOOP Ly besifset bast taegntinoe 


bre Dtaq etsw oldsyac etausooos has eldavec eoton ta 
ye 


od 
.099 59 oF Setnvoms moktehtyo kf Sas mofssatis sot iO seneqxe 


ey 
aft to aaty mrp oe > offs tot setatne arteolo: fis {s) otsqent | 
aniwore ao Stuptt dna mnoideastines to tnemotste B (d) 41 

serteSforiiisose art ot Setudintets etn 





dof 





SLind to ey le ae 


PROBLEM NO. 108. 98 
(N.Y. C.P.A. Examination) 


The Excelsior Gas Company is incorporated on January 1, 1910, 
with an avthoriced capital of $300,000 (2/3 preferred and 1/3 
common, all the shares being of the par value of $100) to acquire 
and concuct the business of The Bradford Gas Company, whose 
general balance sheet shows the following on December 31,. 1909; 


Builcings, machinery 
and equipment,.....s.s+- $100,000 Notes Payable,..... $ 10,000 


Mains, concuits, meters Accounts payable,.. 52,000 
Buc Sornnecticvie,ic<uas <'o 70,000 Gapittal stock,..... 200,000 
Franchise, rights, SUPPLUS yeerecsecves 30,000 


PPivilésed Bree. «ace ses 50,000 
Materials and supplies,... 15,000 
Tools anc emergency 

BUA Cp set eesec saws a & 10,000 
COSN gs. wes Tea ST eee ee 11,800 
Accounts receivable, «erase ga, 200 





$292,000 $292,000 


On January 15,1910,911 the preferred and common stock of The 
Excelsior Gas Company was issued to the 20 stockholders of the 
Bradford Gas Company,in exchange for their holdings of stock of 
the latter company, in the proportion of one share of preferred 
and one share of common for each share of stock exchanged. 

At a meeting of the board of cirectors of The Excelsior Gas 
Company, held January 20, 1910, it was resolved to carry out the 
provisions of a plan of merger in accordance with which The Brad- 
ford Gas Company was to transfer its assets and liabilities to The 
Excelsior Gas Comvany, and surrencer its charter. A certificate 
of merger was issued at the close of the meeting. 

At the meeting held January 31, 1910, the board of directors 
of The Hxcelsior Gas Company resolved to open accounts on the 
general books of the company, with the individual assets and 
liabilities talen over and assumed, at the figure shown by the 
balance sneet of The Bradford Gas Company on December 31], 1909, 
with the following exceptions: (a) franchises etc. to be raised 
at $70,000, (bv) surplus not to be carried. 

As to the January operating transactions, they were recorded 
in syeéctial books, in order that they might be embocied at the 
proper time in the books of The Excelsior Gas Company. 

Prepare (a) chronologic journal entries reflecting on the 
books of The Excelsior Gas Company the different stages of the 
merger, (b) a journal entry closing the books of The Bradford 
Gas Company. 


Ref. 41-5, 
164 


ge BOL OM MLISORT 
(motdaninaxd® eAsT.9 em) 


<OLCL .L yrsenst mo besevoqwedt ef yaaqmo? 2s wiet 
E\f Bra Sovtetera E\S) 000,008 to L[ettouss Bbestrondtun as détw 
ertupos ot (00Li to enfev “sq ed¢ to anted eotarte ont Lf 
oeodw .ymaqmod end biothbaeth off to esontend odd 2 
:20e@L ,fé wsdmssed so gniwollot edd eworde toorla sonst [atons; 


ytenicosm ,eambotind 
000, 0£ g coves Sldayst e9ton 000 ,00L3 woe ene wees «tremghupe S¢r38 







000,$2 ..,afdsyaq etmsoood erotem ett poate 
000,008 «oes eg hdOtE Lattoad 000,07 ee * seve  @tolsognnoo 5s 
OGOe . eeenedess see tulqwwe ,etdats ,eatdonest 


000.08 .5--.w0g. 999 ,2eReLIvidg 
O00,8f «es,e6kf{qque one elettoteM 
Torsareme Sie eLooT 
000,OL Reseccccsvesen gu eMmgsupe 
008 . ££ ETOP eTrerer Terry 
OOS ,3é sav cew p@Ldavieoe't admoooA: 


000, SeS% | 000, Sesy 

aft to xoote nommos Dre Serretowq ele [L0,0L01, af yisunet a0 
edt Io evehlocziicote OS off o¢ Saveelt esw yasqmod 2880 totelooxd 
to voote to eant>lod tkadd tot sgnerioxe at "@ 
heristew to ovale sno to mettsomow ort mi .yaaqmos isttel ert 
whogradsxe oote to eisce dose to% mormon to eterfe eno Sna 

aso tolefooxd eff Io etotoowt to Susod eft to gatteom « 3A 
eit tuo yirso of bevfoeet eaw tt ,OLCL ,OS yrenast Sle ,yasemod 
~Harl ect? dolrw cdtiw senabtesgs at teptem to asiq s Io enoletvorgq 
eit of eoksif[ldst£ bee eteores edi totensts of 8aW YoBQMOD ead Srot 
steolittiss A .1stredo ett febnorive bas yymsomod esd tolLelooxt 
entiteem eft to seofo oft tra Hoveel eaw  teatem to 

etotoatts to basod edt Ofer ft yusaunsL bLod griteem ent tA 
eds mo atnavooos t9qo “ot heoviosst yaaqnod. totelooxt off to 
Sans atoces Ssudivioakr oft Agiw ,yasqmoo ery To exlood feteneg 
ext yd mwode etugti ord te ,bemysas bas tovo neviat setti{idstl 
,200L ,f8 tedmeoed mo vasaqmod esd Srotbead eff to geece Sonsied 
beeist sd of .ots esetioneii (s) :enoltqeoxe ea edt Atiw 
.Settrss ef ot tom evlqiuve (d) ,000,0T3 ta 

hebto00% ortow vent eno ttosenstt gaitstsce yisuaet edt ot 2A 
eft te hothodms ed srigim yen? Feces stebto mi .miood Ieissce at 
aeraqmed 280 ~olefeoxa eff to salood edt ak emtt teqotg 

ot ao srttoelteoy estttne Lemrmot sigelonowie (a8) etsqerd 
ort to eayste tmorstith eft versqmod es? tofeloox’d eT to eclood 
btotseatd oNT to exfood ot gateols yttne fenwo, s (df) ,1egtom 


eYaasqmoy esp 


- oQe lb 108 
SOI 





FINANCIAL STATEMENTS. a9 


PROBLEM NO. 109. 
(N.Y. G.P.A. Examination) 


The ledger of Jenkins & Brown showed at the end of the fis- 
cal year the following balances: 


Henry ONIN 1g’. wis leteie et eres ete 6 Stee aaa a © oe ERG Paks es 6 oe $18,950 


Arthur Brown, TO Peewee gvwee sey Ste rcs CSBP Re CT ED OAH see FF CeCeeaaet ve a Le, 950 
Cash on hand and pig bank, *#e@earnrpseeeaerteteovoeereeoertoee o @ $3 a O00 
Biile receivable, So @ 8 8+ So 2 Breese se eenwree@eaeaesdrsre 2 6. 642.8 2 2 6 750 


BOGRS AGCOUNTS Peto Te eG, . se oss as's so eae ee 

TAVENTOTY: Rewomeeorinieass ss cede ase cvcnn Gee 
EFA oP a) Ae 12,000 
WMANUTACTUTES BOOS, cseceeee 6,500 26,500 

ROCOUIGS eka 5 hay ees Ae oe 6 Sue Os oe we bois bcm eeabele my 00 

Uo i Ce Bad cae MUR ee ee ph ede eee eee 8,000 


18,000 





$48 250 $48 250 
Pursuant to agreement each partner had drawn $2,800 as salary 
which had been charged as an expense to the business. The profits 
or losses were then diviced equally. The results for the period 
just ended showed a net loss of $2,500, which the partners were 
unabie to understand in view of the fact thet they hed done a 


should have oroduced a profit over and above tneir salaries. The 
books were carefully checked without the discovery of anything to 
change the results, and & certified public accountant was engaged 


to explain the uneccountable loss, 


An analysis of the merchandise and profit and loss accounts 
(into one or the other of which the nominal accounts had all been 
closed) showec the folloving summary: 

Inventory at commencement of the period: | 
Raw ETE VELL Ss wee een ate de wie ko 6 Ose 0 Vie es 8 oe Oe 6 OT ee we eee 6 flee $3 9,000 


GOOD ies & ae x80 8 oe 0.0 8 4 0s 84S wine «6 yee wie de 0 hee ele le © Be 13,000 

MAMUTECTUTEC! LOOKS pg heeseneriatseroesevrectewad seas wenn tc re 000 
Pere menee CUPL ae | PEP LOG peas ade & «0 © oe on 8 ese eee eee oe ee 20,000 
BROG CUCL S WEL ON awe vales see ted a8 ated eae Ow ee we es 55,000 
Waces, Shipping clerks, cartmén, CtCeseewvers-sneases sume 4,000 
Wreveling 6xpenses commissions, CUCeseteerovnssndesescs 10,500 
Peer ES ss die bir 5 ya Wied 42s 6 bv Roe we OOM ORE A ee Oa Sods 2,000 
Bee ee ata ie gg a vin hid kB is 0K A's) 4. hone oe Ree eee we bee «e046 1,500 
Fr eee ae Reais enc tev tls cp eee eee eee ee ebe st pee ureeeee »' 2,550 
SUT yee LOTS bee ev alee ts ee chee BR RES tr hw ee ee o 600 
VES rel OG ig ie ln o ko 8 0 oe ee Bie wien eS elk Vl s oe 8 eo 6 2ou 


SPOS8 2 ee eisai sen a me 8 ok 8 ed ee sie ee 0d Ae be Oio.8 bee 100 , 900 
aa ee er Se hole ass 4 5 bdo ee oe ab oes ed > wo 00008 & 

An inspection of their costing book showed the following 
assumption: 


3,000. 


ee ee a ee 


164: 









































erste SATS 


~ 
a re 
i ae | 
d ts = + Pips : 
: ib, 


2@0L OU MeLAORT 


ah 
ae (no Ldarimenh 4st sea 

ace Me Made 
etit edt to Bro off ¢2 bowode arent 8 entoicot * 
; piecing yah BS: 


i ‘ ¢ nd @ 
3 > ar ‘ty 


O80 BL i ee t. 


O38 ,8f wpacee ges onsss+omgheaimama aes s* 7 tan 
000 & re eer eres me 


oev vesacdoeee ewe eee ees aoe 6 See ee 2 IV LSD 


000 ,.8f «oo 0s Oe we Ae ee ona ALLE +togo% noauesas exlood me 

E OO. 8 Go sccaventevs sans LSSEQTOm Ah. janet fe a 

000, 28f <q pile: Che Gls awa. -amece SOeen ary | a 

003,68 006.0 o ebleal’s «4 gDODY dSorasoe Tuten mi ey) 7. 
8.3. Er ere: eR HA eénvoz0h a 

000.8 Seaatea,: sh) pee mT effta © 19 


08S Sh Ooo 54 $ pf Re 
wmarne en QOOS,°¢ er: bad orale sono drorsotgs ot tassel | f _— 
ad Ftotc ant Soc omband ont oF Semoqxe mm ea Soygiano mec’ dad dobdw a 
hotteq ant tot etiuees sit etifeupe beSivid aodd etow agseaol %O a 
sia etontisg oct dotdw 008 88 to aacl gon s howore Sabaw Jest, yS 
onob Bad yort tect prio eds to wotv at Snaterodny od. cider Se 


eid aloe afuafan teoo ttedt o¢ gatbrooon Sar 000,005¢ Go erentanc 
eft <snetyaies tiers evods bus evo ¢itouq # besxbew ever Sisore 
of natityers to yisvoorts ecg dtuocssiv Seaoesno yiluteine: ee eclocs 
begague esw taatavooon offdug hettitros 2 bus .etiweor edd esasdo | 
i — -se2ol ofdatiuosoans ott pe rysiyt eles > 
ay : | 
atayopon seofl Sn, dhtowg Has oe tbnatorom oft to eleyfans aA - mo 
oe: ffs bed etnuooes {sateion eft dotny to -tedto, edt to one seal Pet 
ryan gabe offot edt Seworts | eer nS 
2) A ase i : 


 ghokaog odt to) ¢rompoetenti02- 78 











000.8 e ed ehieg: pimp ee ee 0 wart rae 
000,¢1 ga vv ae be eb els «ile Niels a Mina Wleiaia eins eee 8 3 7 yh 
000,55 «aid dla’, dpind altel diate ae oo ee hoog, Seanes irsit t 
G00, OS } + vines ecmilbie <0 4 he 6 tne: anne eee ie Rim ge Br "tx 

900, é6 Lihicises ses tac lahpdcatth Mie ails iMate mee geste! 

090.» E so idlinsie.ini iia lit 4i'n) <td ee ghlOHIS*L29 geinelo: antgqa tie zannW 

002, Of « acteeevcccnclasea gaQe® 4Gsmt Ekle, COnmoame gattovag? 
y 000.8 Se en nee ou vladimir 

00d, f SEIS aaa oc a 
06e,8 ; eererereererrierr? oe ined gn sewed CITOD, fi 

000 4 why fia ths © & ome alee es vepewen se de sae ene Istocuneh | Y hoe 


o2s e« aese * o+teeneeve pmnnebiae Oh nett Deut non Ct 
000 ,00L, penerpeepennenestessrs ts) eh og 
al Tech eee ee eee eed So ates 
: wee er ont Sovorts atop S: ptihg a a sane 


ae 


Ng Sena 
' 





109 


eg Vas RRS 5 rs re os En ee ae ae i oe $18,000 
gas ead ae a ee orar se a ab eae apy Pe Ea ito ym uae oe 9 a a a 92,000 








Prepare accounts that will give adequate expression to 


their transections and thereby indicate any discrepancy that the 
ebove figures may reveal. 


164 


wake hein 


ae seh a: rales 


PANE 5 
Seu 
Coe ee ar 


mre motesexqxo ofavgoha 
ents tant yonnqeiselb ves eae 





110, 493 101 


PROBLEM NO. / 


(N.Y. C.P.A. Examination) xX” 


The directors of a manufacturing company, before the closing 
and auditing of the books for the half year ending December 31, 
1896, declare out of the net earnings of the company a dividend 
for the half year, of 4-eo/o on the perferred stock of $200,000, 
and of 3-0/0 on the common stock of $200,000. There has been 
brought forward from the last half year an undivided balance of 
orofit of $8,000, and after the audit of the books the trial 

balance is found to be as follows: 


TRIAL BALANCE, DECEMBER 31, 1896— 


DY « | cr. 

Real estate ané buildings $ 65,000 Preferred stock,...,.- $200,000 
Plant and machinery, ...e- 89,000 Common stoGkyses.-s5-e 200,000 
Patents and goodwill,.... 160,000 Sal€S,.ccconsscccsseve § $08,550 
Stock on hand Jul.el, 1896 68,000 Bilis payable,....--e- 52,000 
PurCUrSedsearceevsseesexsee 46005,000 Accounts papraAbicges..+ * 20,000 
LODOT be eteaeestewerveoevess L1/76,000 Profit and doss.account, $,000 
BA ess Wik ly Es hina yt ace ea + ch ae 12,000 
PoLerLGs, PONer aL » a0. «2004 22,000 
Salaries ,management,..... 10,000 
SOUS ONCE, ba + 0 awe ens * es or 1,750 
ROVRLPSs cn cee a's se eh ah e-< 2,000 
Discount and allowances,. 12,500 
OT OE on ws ik kk ee ae * 3,000 
Discount anc interest . 

PULL) awe ws awede ane © 1,500 
Cee th STi abnine «se o0 8/0 16,000 
Tnvestments,«sssacess's pes 31,000 
Miscellaneous exnensés,e-. 8,600 
BOOK GOUCE cas sae e ween vans 84,000 
Pperferred stock in 

CYensury p¢eseboauweres 4 10,000 

$918,350 $918,350 


The stock on hand December 31 is $53,000. Prepare profit and 


loss account and belance sh 


eet from the above, 


giving effect in 


the accounts to depreciation at the rate of 7-1/80/o a year on 


plant and machinery and an allowance of 5- o/o on book 


provide for bad accounts; 


debts to 


also create a liability in the balance 


sheet for the cividends declared as above stated. 


Ref. 3el1 


164 






















.OLf OU MaIaonq — 
' (noltecinasd wheed Bl 


fort 








anteols art ovoted yyaequos asntustoetunem Pe ee tb ont 
ef@ totinosed anthae isey tis ont to it To gnisibys bas 
Saehbividb « yasamoo oft to eankiawes gon odd aes eqsised ,desr 
.000,008% te dsotea borretieg sde% no o tt { ont tot 
good eal oven .000, 008% to Moote rrommoo to Bris 


to eonsfed bohivibay ms taey Tish teal ens fe) STEwIO? 
fatat edt sxvlood oft to tibes ent t93ts bus ,000,.6¢ Yo sitet 
:ewollot es od o¢ havet eat sorafad 


dC8L [5 AMAMANMA .ROWAIAT IATAT 


v 


—000,0083 ......,#90¢2 bertetet7 O00 @ epalbitud 50s otstee Leo 
000,008 weerrrer ys ts | norsinoD O00 ' eee reg ernido som brane | ke uy 
OSE BED paserensencevens COLBS OOOORE on send Bas etustat - 
000. 38 ovasoeese g SLGRYSG ellie 000,82 seat elo fut at No Noose OR 
000, OS ovsesgoidayag etsrsooo4 000, 80L eee ee eeeereeces BORROW | 
000.8 ,TfooasB esol bas $Ltorg 600, av£ wees eresseseseeseee g TOGA 
900, eoresawnsesrarerapeng BOO i 
O00. eoee seas ,atones ,coitalse + 
000,0L evsnegtmomegscom, eoitalee . 
oer ..f aves =e renee sey so ¢@ORn Rel 
000.5 Cn ewedee sess seeps geTERION 
008. Sf « ,.eeonevoll[s Sas tavooetd 
000,& Se ecetnvee ee ee eenae tdatert 
_ Seeretat Spas. Snvosetd 
006, 1 poee vn seuwesoseenecens a 
000, é61£ Trrerrerer es yo ree 4 des? 7 % 
O00. £5 ww wseesneeee sg Qtamteovar 
608,38 ee.eeenscxs evoensif{esetMm 
900 , dS consemeceeceny getood Nood : 
| ai xoote Bbortetied 
G00 OL ovdareveens eng CIUESONS ; 


ae are® t 
az, eres ate ose ,ai08 


bas titoxy srsqetd .000,2388 ef {8 odmosod Saad no xoote orft 
mi soetto antvig Lovods oft mov? teecle gonelsd brs Invooor eeol 
fo xasy 8 o\o8\l-" to star edt te aotd¢stoorgeb of esnoons orlt 
ot etdeh wood mo o\o #2 to esmewolis me bas yronidoam bas trata 
sonslad ody mt vititdsil s et¢seto oels .etorrooos bad sot sb! is 
.botste oveda es borsloo’ ebnobivt> sit tot goede 









BOL 


PROBLEM NO. 111. 102 
(N.Y. C.P,A, Examination) 


Messrs. Doe & Roe are partners in business, sharing gains 
and lossés equally. 


Required, a statement showing the gains and losses by both 
the resource and liability method and the loss and gain. method, 
and also the net capital of each partner, on the basis of the 
following trial balance of their double entry ledger at the close 
of the fiscal year: 


John Doe, EMV OSEICHE 4 beste ewes ec nceiasanavgeen dus bie @ # 8,405.26 


RAGIAI ROSE UNVESEMONT pce ees ce never ccsceyswenens oe 8,405.28 
COME wICUUET ty kerb 4+ 60 CAA So ons soe ee Gay Oe, Oll eoe 
MOPCHSNOISG, ob Genes CP ewe ee Sp ewe ecens 3,424.89 

BULLS POCCLVEDL Gy eet enact ever es eeseuseou 12,000.00 
BLERES OR eae wee eke eee se ceansesess ° 8,550.00 
CNS Oy e's 0496S EUS e et eww one wee we . 576 .00 
LCS E SEG SG on sa ee es Leer Cwecewes 129.74 

TORS BYE POLS tees canes eens eee eenoreere 250.00 

Sundry book accounts receivable, .....eee 53,566.00 

sundry book accounts payable,.cessesecees 3,803.42 


$28,963.96 $28,963.96 


Inventory of merchandise on hand,.escccccccceccs ohpaOees 8,000.00 


164 







‘sor | tte om asdome " ic 
(cto itaninsxd ALT.9. rem) 
ee aalrsdde Beonl aed mt evening om 208 


tec yd esesof bra entay acti iwi ioomndal ey 
sodsem miag bre eeol edt bua bodtom ytiitidalse & 

edt lo akesd eft no . tents fige9 to Latiqs | | 
eeofo aft te ssybel yatne sfdyob then to eoaaled £ iprivesion 1a 
| | saaey, Lane 2 ed% to 7 


a8.c08,8 3 eer RE 00d mot 

6S .d08,8 Seo eset ones erst seeseesoseer gt MOMseovat (00K Bredo tA 
ee.FL0.8 8 SCP Sees eee eresreeseeevesssesesene eeBd 
C8,i85 .g Pete eee eee ee ee) 


(008000, 8f C8 en etree eee tovenesee SLdavionet efftd 


00.0888 Pe ones Peewee crore sewns eens e MOBY RG eLfts 

i pea : ih a ee Ee ee Tt 
PV, @8 a THES H OSH Ree ewer nee eereereres ee gt eStoInt 
00,028 ST este ewer seseeeesessscees gis bas eeol ; 





00. 06,8 eeesevevy Sidavisosy Bitorrossea xood yy tbawe 
Sh.808 8 se a dotal Satay etnwesss xood bicweacne 


8@.800,88$ ac.eag, sce Ld ae Bere tes in 





* 
coterie oe BA {Satta 


aa 


60.000,8 # + sisi a gone 10 se tbaartorom to vrotnoval F 
O08 +08 J 
das ; 





PROBLEM NO. 112, 


(N.Y. C.P.A. Examination) 


From the following trial balance Dec. 31, 1897, of the Blank 
pottery company, prepare manufacturing and profit and loss ace 


counts and belance sheet: 


BLANK POTTERY COMPANY 
COMETER Doar a ce FPR Se Oh eg es Seaweed ee PO reve | 
Real estate and bulldings,wsscsevecccsessnes 
MAGILWSLY s dic SOD PE CMDs Clee MCs oo eee ree Fae we 
TOSLTSE GEOT Es fies Vie PROT Eda Fels Poss CUVEE aa 


Horses, carts, SOO sepaeasduseuevese eevsvseds @#e26¢8 : 


Inventory Jan. 1, 1897; 
PT RONOE?TC sb vckaes cee wees +s 40 ses $5,006 
Crates and packing materials, ..... 1,200 
ClIBV g@easecnonaes erry Peete eee Lee 5 5900 
CGOGL BMG SUNACTITSS  eseasvecvecscecs Lae 
PYOELT afd LOSS BCCOUNE fesse wedevesidevoveda 
DUA OOO GUT CeBSGtkEs ane He res sdececnessceves 
SUNNY TMS TEC es chee vee ele See ocr eee eens 
SLOG, POs 2S OPES Pc Pee PERE. FO Cb C4 oe CHWs bs Os 
PUCMINE se GCOREGSEREEES ES HOSE Re wee eres ricenn 
SUraw, ‘GCVACSS \OUCs peenrededindevrdrdrrvrrde 
COB lL au de Ee Ss PET EOD Wels PRLON DS ow « ht a Ha diel at a aah x 
ClGY 5 2 DREN O6s POS Soke BLET OL G ewer ees COPS PA OMS 
WEZES 5 SOG cele SSS eww erred dere Own ee res 
Horse aH cea E Sse ye awed tervever ved erre 
PreLgnt, OUCesgescceseravessecerscveserece eee 
Repair a Co. MavNNery , eeerwewe sedi ete eesieades 
REPAirs CO TOOLS yee westere oa a eeae eee sesso wee e's 
HREPAITES Che. WWAIGINES weve vewsever weve eres 


TARSS 6 AOE re Cw Oe a OOM HAM eee av Oe ea eel e's 


Gas BYP RC EE, CODES OE ere Pe Oa Oia ete’ ie ol Gale eo etes 


FILLS DEVS rater wte te ote! ar a*e'e 0! Wat eietete eel sete" e* a’ o's att « 
BILLS PABOAVAD1L SPI I Pact atet a eit eal tate eal a's 
POLCY GHUMRASR, 2F PI Pine terete erate ote'et a atatatate’ eats . 
COS, os hil ope Bee were shetetar ee “atatevetetetn ats wistehate? dea ‘ 


Fetty COR BEC d eae Rk He oS ee nee ee DR Oe wee 


Dr. 
4 10,000 
12,500 
2,500 
1,500 


12,500 
15,000 


119,000 


Ors 
$ 44,000 


1,000 


5,000 
60,000 
5,000 


4,000 


#119 ,000 





Inventory, Dec. 31,1897; earthenware $4,000; crates, cte., 


$1,000; clay $4,000; coal $1,000. 


Write off for depreciation, on machinery 5%; on real estate 
and buildings 2-1/2%; on tools 5%. Allow for bad debts 5% off 


debtors. 


Ref. m4 e 











zor \. eSh2 204 MEIEORT — ‘ ‘ : 


{mottschmext Ase. hay 


2D 7d 
O00, $3 rid serine cuoaceva¥Geguiaaeien. adc... s Legtqad 
000, Of e coscscedeseuenene cg SENIDE Bie rate fas 

O06 Sf ee ee a ee Osi - 

008.8 Seseeseesessssesseseeeestrersentecs 300 

00¢ , f 5 ein Vii, aD to oto ; ecetoH 

: ore = saat piorreval ) 

000, 3% es ealens coecdaes ott) eae 

OGS,f sesasg@isinoteam grtriosq baa eoteaxd 

000» e SOeReRRBA ser ewacrenes nn bee ebhe EU 

00¢, Sf OS if eonsccoswcsceeee BOltbane Bee [a00' 

000.1 eseetevseseeseseceegS@vO098 gaol ftte $ft01T 
000, aL ce cees ee ees en he bese ceed ohmeeantorene yrbrwse 

O00, 3 Ree eeroeresrrestoneesees seme tO0r DOTS VUbewe 







900 ,O3 WOTETTETITITTT TTT LTT TTT re ee 

O00.¢ oe ee eeesnee veer etetes eer ee saege dle eQtiftosy 
000,¢ sieca ks Cues caadealicaeaae e80T819 eWatse 
00d,f ceo ceaeeseeereeeesdeseeseeenbedd ce weweegneen 
O02 , Sf os da aebae b's sae oes Oke h ene ae ee eae. 
006, 8é WEePTrECEPTrCrrTeTrrrrrry Tere etry i) fe 
O0e , L . Peo re oeweern ne eens og PEMOGKS tao 
o0¢ .$ Soncelesndeeesr evecesoveseeensuneee atet art 


obey Soocevevesscenscesegooge ye temanaen OF at. sagen 
ods bedi he ahibepaneobebiia ce bo me ot erisgen : 


00¢ ; PEEErrrrrrerrerer ters) Trt). 3! tac at etieqoh — 
oas oe SHS ees erorese son eeeeyeeemebessenacee g SOReT 
oes ee ee 4 ; : asd 
000,23 Pererererrnr ry, tren rye re ee ae. ace 
000,8 «sn com oe ighaielapeina ih diee oie aaa 
000.1 eee Te oe 
OeS,8 POeCerrerrrerrryr rT err Ty ee cy ct re es 
08S. errr Tver Tere eee yITes 


000,eLffe 000. OL hs 


e+9F9, totatD 000,56 esas: oN gr fa 90d 
000.£¢ Ls00 600,55 hig 000 ts 
etateo {[n0% mo 728 yrentdosa mo * dotdatoouce ot 


tto Ra etdeb bad tot wofLA RB afoot mo So. sneha bre 
setostdob _ 
: 809.708 ; a 


bof 





TAN: oi eee 
we re ae, Pee ies | 


PROBLEM NO, 1135. 104 
(N.Y. C.P.A. Examination) 


John Doe expends $100,000 in the erection of a business 
block. At the end of the year he finds that the rents of the 
stores in thé block have amounted to $7,500 and of the offices, 

955,180 The expenses of the year have been, janitor and care- 
teker $1750 ; repairs and altcrations to suit tenants $500: water 
and gas &A00 + taxes .01975 on a valuation of $87,000; various 
incidentals $150. Make up a statement showing the result of 
the year's enterprise and per cent. of profit on investment, 
after charging 5% interest on the capital invested and $2, 500 
for depreciation. 


PROBLEM NO. 114. 
ives Uslaa, EXatinateor) 


The following trial balance is epee you,with the request 
thet you prepare a revenue account and a balance sheet: 


tT ee a gat aes ene u 6 e's 6c cin ey) ee $20,000.00 
A B's personal ee eh lala seat 1,000.00 
et Or Git AWOL LON, whedsectieseesest & 600.00 
eee eee Ps ae yc bikie ae 4 4[e 9 0 8 «0 98 90.00 
PerCnagc at, SCCUUN sees teervtcasnesessen 8, OUI VO 
Poa tT aCCuwivs ose bees 5-008. 6 Peo ee ee © eee 8 Shea 
Dele eee UR Cessadeveheoweeasbesécenese 6,400, 00 
CULIe PAVE DLC sake ate RR EW HAO eee ee ee oe * 4,000.00 
Se Phils sas © bogie + ole ae ha + se 8 0 8 sesseene \Lyoueee 
DSN SUOCH, Ween kw ees «a0 ¥ ay ed a ia ema ear ide 1,566.00 
GEHEPAL GAOSNSSS 655 cic wa cea dae welsh 0 os « AlegwebQeQ0 
PEL GMCs oe 0 5 Wee eee. sew st Se ee eee ceees Sey OOO 
ACCOUNTS YECOCIVEDIC, bss cccesseessesecner 8,00G200 
PEACE. 06 VED 1G un gis puh onc. 4g pomeee oak ope 10,000.00 


Profit. and LOBS p00 oie 9.910 4.0.0.0 000» sia a sy» 88 5,446.50 
$34,000.00 $34,000.00 
If all the information phe ee is not presented in this 


trial balance, supply whet is wanting and submit the statements 
called for. 


our wazs0ns 


re Wy “a , 


POL bila 4: 
(moitsaimexd whet 5 wait) 


asontayd s te sottoor ott et 000, ,00L% ebas 
edt to edron oft tadt eoanlt od neoy end to 5 
.20altto aid to has 008,%¢ of boteuome oven aoetd | 
menses S68 tod inst read ovat sissy edt to seasneque 
xotaw :0086 atnanet tive of emoltsetotin bas - ot 
 gpofary 7000,'6C to moitauiay 8 mo BVOLO, 86x 
to Siweot ait anivode daemetate # qu ols Fp gt 
Cary oot mo ¢ito1q to .taeo toq Sas oataerenee | 
02,88 bas boteovrt ta ont mo tsexedat 82. get. 80 


AEE .OM MaIdOne 
{soltseeainoxd pede aa Yeu) 


geostpet oct dtiw,voy bebaad af oonafad Latest patwosfo: ent at ee 
soore ponsled & bas frwooos esymevet s staqetq soy fast 


00.000, 08% eer. veeovreeesre- Renee ees GOeehvne ees eve ee © tndtase etek. 
60,000 ai Si nccec cp uneees 6 6 gatneoes AMOBTSS @ *q A. 
0 sen © ae 6's 6 eg een en & rely ena AtiI0% to waned . * 


00.0 Pee pee RE ee re 02 ; 
00.009,8 Perer Terr Tree er ee eatonedorem be 
Od TS) «alas cue ia os keh lease’ al lie oil xisqed sta: 
O00 0Of,.6 one tees 6.06.66 e 00 ba ou eee e@iftes BPONY 
00.000, eee oe errr afite: : 4 a 


00,0cc,.£ oar peed aeectesnnes 60s eee ee amee {seh PCr: 
00.3206, f.. «a u80c 0 es warkime om dink ate g MgO weeg © tn 
O60 79038,f » uis, wie is 6 4:nsale een moe eg Le tansd . TORT 
0.G00,f Pe re ee i 6, 1h 





00,000.88 srcascesccceresaccagdOQVsenet Sarmaoek flisn 

00.000, 0f scocadcvesanesdccduees gosORG RG huttoee are is 

hs Og .325,.5 Re aN cee. cider) baa tftord De oid: 

§00.000,88% 00.0 $0 Veet eee | ee bi ae ghar 
mks 8S | ae an 


bit nt betnoeosy, tom et nothepor Gat onredhiedl ead ‘ffs QI 
emotete eit theige Bree. athe bs onl crt eeonatad tetas 
Pig, « Tie 20% we Late 


& 
acrt 





A, . e 
i 
iJ ; i" 
s SOL 
by F 

















PROBLEM NO. 115. 105 
(N.Y. C.P.A. Examination) 


The trial balance of the A.B.Enitting mills at the close of 
business stands as follows: 


Yarn Peet bie peneccnt ee eee $ 20,000 
Pic Rl a Gin & GSE] + a0:0. seme eee oo 4nd As Be $ 65,000 


TS ae tse.e HRs 0. e + heat Fee oe 6.46, 18,000 
MAOGOUNTSE . PECELVEd, » 5.00 «mw ke e.5* es ems 2,000 
DUG LUG wits t 4:8 ee tia AS ED Ged 60s Cane eee 10,000 
POWSr 11 ent and HOG eecdweeaeesccrcchobaun 2,000 
BONCRL ANG DOSE 5 me eece areas. tein 9.696.408 ae ee 1,000 
RODATES, d sin + 6s ae eee ORS Ree we 6 nse Oe ee 560 
EXPCNSC,oeeeceeeccrserercrrsrerccrvncens ean 850 
SDSUF OCG J nce ae eee e NS ee ee p 4 125 
SLOMAGR OL POLITICS S pet ewek swe doscewens een 2.00" 
Tames Ke kee eae aw kw 0 Ok eer r ee eee ‘ 250 
DGERPGCTACL ON s 664. soe wae en dee ye. Cee eee , 550 
Advertising, .«.+.s. Chin hae De eka es win 8 eae Ore 1,000 
PAVE aie CRCNOUS actus wes suuvawes sy stefan : 900 
ROS POC ares eh wae e sha eee cence see . 800 
PIOUS SOLON os a tien ced ew « palate pa ale Oe ee 9 es 1,500 
MEOUCUNGE GLUON es web kane ee a sist ce eee oe bound 555 
igi siatss 5: terete bel) 1 hs GRR Mare a a rn a 550 


COS secre ce tue or @ we ee ev eevee epaneenane oe 4 @ # oa 11,200 
Bills Be LOE, oa Wa Ss esis Blew ee. 6k rer 30,000 


Poerner es) SGUOUNT Ce sawakaceines acest secdans 18,000 
Accounts CAVED Gs ve ien eee bee ntesen eens anes 5,000 
SIVGNGOY . «kinetin s Hh h ee Eee eek enka dees ven 5, 800 


Capital STOCK pee ds +06 wie aes bow ee eee s sewowees o@ 75,000 
MAGHINOLY 5.0 04 die ee ee us eee Our See eae ae . 52,740 
Bills receivalbe,..... ee i eee . 30,730 
$177,000 $177 .000 
Prepare manufacturing and prorit and loss accounts , showing 
value of output and cost of manufacture. Make out a balance sheet. 


Ref. 9-6 ° 
164 
























000,83 6 
900.8 


O00 , 0% 
000 ,.2 








(noid sextmxd ae of 
to c2oio oft ta afltm saciid se edt + to, 909 


908 ,& 


nonoooe Beef bua $itoxg. bar pebusdos buna e1sqett 
5 ¢uo ela Daath esc * geoo bas duqiue ‘to. ouLov | 


000,37 
ony .Se 
OEY. 0S 
000. TELg 690 TVE 
¥ fvore « 
. eerie soneted 


i 
7 
j it 
| 





“afl 20m Ma 


Perrverererr tr ee ee eer 
Loewe renee eee enema Re Rees es 
oct een ene ae een ane ewe ews © amis 
eee ee eee eee eee ee eee eH EVE vi o 
+ oe 06 Shale Sieleelate aduie o ise aenin ime ans 
00s cb bn bea bene Cute ener | 


pian’ ihe Ae 
a oag 


a ey. se 


errr rr fy reer The crt Be elon © P 
oo 086 Lada aees 0s cone ae aS S.. Sei 
Seesseceneetecsenteresesensstesenes sOBGODRE ‘ 
eRe RARER ERE EHTS USSR SKATE ESTE ‘a 
ose dilce cde ci eneacb es yetee 210-38 aay . 
cae eee Oh 8 COREE E CO wee seen terete ee 2 Gq) : 
a en mee, Pr au ay 
» ode cuik le td SL ae ee eee titovbA Lak 
escaetoweewesa sin dene sees geOEMmogxo aniloveT 
bis 60 aah s kev s ee eee een eee borinsdon 
«a osha sg ila Neagle aaah ay a aria oh ait ae 
ene nn gh ee etrmooe td 
neonncdasescosenesonegens games EO teotognt 





ac eer er deer eee eerste beans CO Hee He Fes ene o- 
csesegavecrens ener guewen spuhmeS hie toe uBt ioe fa. 
eceebaceseacesequcsesnesegeemmogoe: 4 

sean nua'h och les theer ane rgwanhn 

PRR SHORE ERE ERE HHO CCH HAE HEH He sevel- 


pescevesdedees sche aeteeauenegant 2 ehcp ped ; 


Scere Pp waesa eros ePes ere eee ser ar Fire 


SUI bane boor wer er il 


J 






4-8 ton 
DOr | : 


PROBLEM NO. 116. 
(N.Y- C.P.A. Examination) 


The foliowing accounts and balances appear on the books of 
a trader: capital €25,000, accounts payable 67,500, accounts 
receivable $5,000, bills receivable abl 250, bills payable PLeeuus 
furniture ‘500, sundry investments $1,000, expenses $2,500, ease 
of factory $1 250, depreciation ¢ ‘250, purchases | $50,000, snles 
355,000, trade discounts roceived on purchases $2,500. The 
inventory of stocx on hand Decembor 31, 1900, amounts to $8,750. 


Prepare from the foregoing accounts and figures the follow- 
ing: (a) trial balance, (b) trading account, (c) profit and loss 
account, {d) balance sheet. 

Ref. ll-l. 


164 

















fe: H vs ; ’ f 
7 7 ‘ ee ¥ mr 


7 

ir to ectood ar to gneqat aoonatad bee @ 
Ms, etrsooor .O08, va ofdayn ‘ 
— 40es £0 ofdinyn ‘of ef tte ,O88 4 9! 

| Seno 008.8% zoenoqgxe “000,£8 
i Sates 500, 088 esenlotwd ¢ at 
me ey ont 5008, $) soead mo bhoviooot & 

y* OAT.83 of ag onvouie OOOE 4 2 roditooed brad a0 x 
if oes Ae . } ie eis 
© awolfot odd motge? Sar) eturonea ante ovo? oct 


‘geol bas titotq (9) mhipartc X ulaneeton d) ,sonsisd ta 
a eM stoode conaled 5) A s MOS 





















7 q 
whe 


‘ ae A iss : (jae nae 
Lo ot ee ae 7) 4 J t ia . 
ii ie - ‘ bee. Aad © an rY li Pu # 
<i aero Mh 
, i te ee v4 pee y qe ae 
‘ . ; s Vieyo py 
ay to yey i 
Lf ‘ 1 oe) bh ee . 


y X end ath @ Mit ol A Ot Shoe 
Lae ey eas Hi we 
ee By Laat) i “ aT, ei Aerie 
“ -* | | « .¥ rb o it bs 
| i Oh: ana Hide 
ay i : 7 } fs si bahia) 
Ne z lees oe 


‘Aivgias Seeeaee Joe! 


ah oie 


x } nie $ cms  € sy aely Hikived : 
ine! : ' 
oi me 4 pei — Ee At ee uae ‘ fr. ee ty & 


fat ais ) Weriy Ap? 





PROBLEM NO. 11%. 107 
(N.Y. C.P.A. Examination) 


From the following trial balance,prepare a trading account, 
profit and loss account and balance sheet as of Decembor 31, 1901: 


POMEL gi Pade ade Ve ee CUR EADS © 4h OBS RE DS © gt 24,000 


PeesceenG, MACH INGry pose we ewe cos es 6 eee we 6,000 
Purniture and fixtures, e@eeeoeoereeenteetooeveevreeseeeerevt es @ 1,800 
BVO CMCNUD, fit ecctateces esaeseovesoet*¢ @ @ eseeoe3rees8e88e 8,700 


MONA Rs Pov eae ease eee eee oe eae ees eoeoev eve eraevee 12,900 : 
Partncors * capital, Jaminry 1, ‘TOO, sce) an $112,500 


recs SOCOM se teens selene es os ss 4's os ee haat to 
Caeraat DATE eee aman es meee eee ce see ee 9 a a mies ‘ LY, 200 
Ps SITE TC GR Sea eee ek Senha nbn ee nena O75 
inves” PQUU WA cee he ces ae hen kee es cess Rakes 5,200 


Bree Ase ee Me eC ile ee ees cc vee eee eeesuee  €, 875 
SUNGTY GEDTCOMS pes eksenees rie seca ea ‘mie aa 11,700 


SUNGMPY GCPCULTOTS ye ees cee cee sears acoe veces cas # ot 5,'790 
Pier Cee rw ese ces pay Sees ep eet en bah epee 51,000 
eet ie gievlslcte aes sc cule cuss eee sae we Sa beu 80,250 
ema gids cs ee ce ba Mie ce vy Se eee ee ee wees s seee my too 
PL EOR PERT Hie drs Ce Pee sac ce sere veccensseve ene Mateo 
MPOWO PUR ERVCTISOS ses se ceceeeeaeecees ik ee areas ‘ Laera 
Pea, Pee SIC, OW OL, sag see oes se cee ee ae eeene : 510 
eg Oe Ce ae & vie ole se. 4 4 6 ¥e.e eee e 2 te ee 1,565 
WABCS ys eee e esse eres eae ss SAP a ae hie < ss ewe . Su gio 
Discounts and BA VOWANCES, -y eee. aie aka re ey 405 
Sie STi SA CTIOO RG pais es ese 0 nels ev ew wees * Se LO 
Dey ce Gh eh ee ce See bb ne ea ese aer et en cee 345 


BERR GUESS £5 sak Ss hos eae a e's so omesewoeeaorovee Ligue tO) 
Inventory, January 3 Tek i ae 55,000 


$203,115 $803,115 


ee 


Write 2% off buildings, ibs Ate off plant and machinery and 
10% off furniture and fixture Charge 5% interest on partner's 
cavital from January 1, 1901. 


The inventory value of goods on hand December 31, 1901 is 
$46,080. 


Ref. 12-1 


































yor. ‘i TLL 20. oa 
; ; ; (nolsackuaxt rAeEaD 


7. a 
7 ». ‘ 
‘ a 


gtatrro99r aekbset » omaqorq,oonslad | isioat m: pies sors abl 
1£0eL LE todmadod to es toore sonsiad "haa | YOOOR eno ban tow as 


000,48 $ eds «sn ah ae 4 
ve 900, 3 ooees cues «hy am’. ene 


q08 .f ont e- weed 6 tee ERAS seem 


| OOY 8. ae 

f 00e,,. Sf PR 

008 S66 cccusvouste ghey ge YSauaniaw aletiq 
avy .$ SUL +; 


002,0L Serer ete 


“fe 
Ove sou ecets theme aee Gene ses Seen ee ee 


teed. 
> P 0eS,.¢ See CRKURERIR rth) ot 
(OTS ye ; Pre irs PETE er ee ey effla 4 
OOV >». Lf awe 4.6 (hh 6 Ree Ok Sie bin oh ne ae ee yrbewe ny 
Ost —_.¢ : cunabseed sl ekebeh + bebe ses'ee eee SOC Reet ywibave : : 


O06 4i[3. enc wt 00 ssbb nts Sates trail’ 000) kee 
03S ,.08 ose cnse 0s Vep Msc sale wey ONE hE cee «} sei aL as has 

320.$ eee rk Pee ET et aoxecT _ : 

o5L.7¥ eve wis 66 OLR On Cella bn ee eee eee 


ars, £. et ovscdeter cde tune ee bbe e856 4 OO SROGNO Mitr. eens | 
OL¢ encase op envecessbese see seg BONOM bas tsor atishti mY 
aaa ay a caer tees wees ee eeneweusse cose DERWGNO etigtord 

eA = Bi ry es Mm rr ne TA ee a) ‘te aal 
20d Ee et Pre etmvooeld : 
Off coun anans sesteeeeswae (RODRORRO EO ammE ytoave 








ae cots cleeine rRNA C+ + tied SNe a 
OV lel eres eee eee eee ee a) ‘a 
O00,.c6 4 ss cn As Me OR 7 ‘Visvast- ‘rotrovat eeu 


ce | = é 





Hein yrondefomm Sua tralgq tte ae\rey issn bat vio Rs ostcn one 
 etrondiaq mo seotedtek _ og iadd seowsxi? Sys enutioust tte ROL ear 
| -f0@L .f wiauedeG mov deci ag ae 


ek (0@f ,f& vodmosed baad mo eboog to oulsy tiotasvel off |. 
2080,089 


+f-8f st08 





PROBLEM NO. 118. 108 
(N.¥. C.PeA. Examination) 
From the following trial balance of the Excelsior Ribbon Co., 
prepare income and profit and loss accounts for the six months 
ending June 30, 1902, and balance sheet for that date: 


Capital stock 


Perferred, 250 shares at Sy. + + «ie-0 0 oe passca's* 25,000.00 
Ceamon, “S00 Ghats eG cite ews secs cucae thee ie 30,000.00 
ht ee ee aa er Line 24, 500.00 
SOVen LOY, UGC. OL, LEOL yee as ven enews nes ° 78,620.15 
Accounts PECCLVaAble, ccceeesrcenreeces <a 63,428.30 
Materials purchased 
Shee (DCW, SOU SNC GaPOM yan .s eee sees » 124,326.80 
Ribbon paper, DOKGB, tate ls SCC... ee ee as OD, fe0.05 
Labor 
Ue ee Pai eon ea e's ws rig aie Do eis ans s # oe ‘ 29,584.07 
TRON Ge sg 6 ole mnie 2-0 mae a a ae ie 10 876725 
Omi swale x eile ee esis ees Ome LN a reer 8,563.43 
Warping, winding Shea eek. « aan ev ese . Logtatsaid 
etme aie CPepar ie LOCUS yeep eee he oes : Le 20260 
Sales of ribbon, less returns,... 4 Ny Paes an 259,125.74 
Saies, OE eee yO lame 
DiSCCUNGS GH PUYChaSes,spcccsesss aw areie 120, 0G 
Profit and loss ~ surplus, Dec. 31, “1901,. 23,528.74 
General expenses 
Bago tee. Oooh Ss SC, CLEPES, wc 00s ss ene ae SA Ba 
PRIBEOCTS SlOCs eee oue xt essns ta nsasesoe 2,000.17 
ReGt. Of Wad Laie + «ein eck Ua eale “era eee 2,900.00 
OO le yw wi clka eis Wa sas Hale gp oles so he ee 17,856.50 
PC tee eth eA CUCes p05 hs ae Halek etc ese oes oy Us OO 
Other expenscs {including ins. &285 ) Vea 7,650.39 
Bille COVER Ley Bameen teehee ews tials teen aes oT ,eooade 
THUCTESL On OL ils payable, we ccce ce Pe: L.566..255 
REP ce ave Le as eh ee case pen so Passe ces 6,875.99 
DOS Ti DATE. aay a ke tx a ty shes eas Mireles bis doctme 9,876.25 
ee ee eG’ a 6 Se whee die: aes WeOsoo 


$410,592.20 $¢ $410,592.20 


In your statements provice for the following: dividends ce- 
clared at the rate of 3-1/2% on perferred stock and 3% on common 
stock; depreciation on machinery 15%; prepaid insurance $48.25; 
labor accrued but not due (estimatcd) $1,850; taxes accrued but 
not due (estimated) $250: inventory, June 30,1902, $96,385.50. 


Ref. 13-1. 
164 


| _ doote fntign 
00,000.48 Pickesiest-.c Wr $0 Soxuret O88: . bee not Pu an, 


-90,.000,08 rot n ste esasr cerns teeesuse OOLy ts pasha O08 fi i 


er rn seen ee nye 


Of . 3 
sen cnenetinmnataell 


iwi 4 


i CO te 
a | 
= 


#95 eSrobivis 


tims 
- 

> 

is 


OQ-a¢ 
1D OC 
Ke & 
me 

9 cu 


n 


ty 
“a 


an 
a 6 
| 
vs 


“footer AO 
4909 soddiat tobeleoxt oft to oonslad tskad ache 


 ecidtton xie oft tol e¢nuoven eeol bas tt oy 
tots gat sot toode oomated bas .SO@L 4C 


00. 006,38. Gono. e +e meMES Ses «cmeaiae eee 


3f.088, s 
OF.8 £5, ge 


08.082, 88f 
00.88% .é 


TO. £58 ,e8 
es.ove, “OL 


eb, £92,8 
SE LAV SL 
08. aa t 
ey. 3°38 
Yie830-8 
00.0038,$ 
02.028 eV 
63,076. 8 


ez, .08ca 4 . 


5.088. L 


OF «ORV 


$ 08.$08 ,0r8g 


sorneny 


Tee cec nga ts s9 aan ia gant 


-getwollot oft tot obtygag etnometate . 

ftommo> g° R2 Sus aeote bewrretroq mo RS\ 

Connmiusett blaqos 

bid oes goxat ;006. £8 
02 .28E.503 . S00 LOE ortert eviotmovml 







Vere’ 10K I 












Yee ey 





a. 





ceveeeeeeewhnw sve LOMe gik: ood «¥ Ovrrs soe - a : 
vtec neegeeerine +s se gMiCaines vl i a 
( et  heasrio trey ; see 'g Loan 
vovecodeceeeg(hwoml?s Sra B wat oF 
cssesergs 998 BLodal .2oxod + togaq aodstn Pa 
ire a 
.='1 ble atte e Udheah > 49 po ace a ie! f 
ny eee ster a mo 
MPEP 1 Lh eae gaibalw aigaat : 
trees neememen eg BMOOL Baitagetq Snes | 
ters ee enn ee  BMIIIOT eeel. attodd ls eofae 
2/0 hss ertcuseseccese QuOomsl looatm bon 
src t tte ce sere ene ee eg BIERNOIUM oO atauooeid © Thy 
-:f00! £8 .99% ,epiqure = eeol bas bls SA 
 eecegxe La: mak 
eels. a ae baa Brag LTO ,2oitslag 
Seeereer Oe erry ateenigay 
Freee n rete rereer scene senncogh lim to tron : = 
Steet eee n note ewereges se g SMOLZBEMNOD © a Lie. 4 
eee recs euseneccnsvege dtd gattigit fot 
-+<(8899 «ent anthulont) eocameqxe tonto > 
Tiaseressearrsescesavessepen Old e{ita@ i 
See ere vena e wee ew OL fdrveq el{id no testotant . 


"ht Sa AR as ie ee me cog 
89 oR 0. OO ee 2 28S ORAS Oe te eee a eee ai 






























8 Stee RT Te ee SS ee 62 8 8 


"3 


~f to oder odt te beveto 
:R3L Yrontsoen mo dolsaiosigeh itoote — 
( Sotamiteo) ovb tom Sud -bomwtosa todal — 
:O08Sq urine au enh aa 


' : ie 


bol | 





PROBLEM NO, 119. 


(N.Y. C.P.A. Examination) 


109 


The following is the trial balance of the Arlington Manu- 
facturing Company at the close of business eqgenber 41,1904, the 
opera tions: 


end of the second fiscal year of the company! 


COSA ey «ved onde sguke > tR0e2 Kanai sack Ba BE, 324 
BI ee leah ah Gene ers weee «kwh : 100,000 
ALDI 5 e 0's wis wie le +c vikie eke Ae ee baa + Slee 200,000 
MACHINE pu w eae SG ole baleen eo ae eee sae 500,000 
TOOLS’ Gn implements) «aba bob a eee ees 40,430 
Horsés, wagons, &nd HAPNCSS, wssseecesere 30 , 000 
Oe POS TUTE ER ie ork eee wie ee wees ab eae S,e0l 
PL ee PCCCLYAGLE panes been epi Sa he eee ee yon £0,012 
POCOUNTS* FEGCRLUAD LG cose rk se chews sce een 165,374 
Investments ,s+serereerres eA rae bet se 20,000 
Salesmen's accounts, advances 
on salaries,...s Eo SA ee 1,860 
Organization exp. $15, 000 - less foe 14,°700 
fee he, wp Ait iit GALES 2 Se Sa a eae Beet sc pd eas 200,000 
Dadsve POVEDAG ses ey de etn Ke ee Sis aay 
Pe Ue Fe a eee a a 
Special accounts - officers and clerks,. 
Reserve for bad debts - less accounts 
pep Sha yay ORIN 6 A A Pr re ras 
Reserve for depreciation-buildings 2 -1/2%, 
machinery ora 
4 ‘ horses, wagons 
es a tea a dis eo a ae 
Capital stock 10,000 shares @$100,..... 
sales leas returns and allowant@s,...4.+. 
Rent of part of business De tet ss 
Daventory Dae, ol, 1905, ec5 6 65 Tere ee 104,621 : 
Purchases inoluding furniture and 7 
OCOVUTARSs ween ewe ees ese wens er ee enews 395; 662 
Per en ee COre Se VP OS yee he cles vic Oh Ale 600, 400 
Salaries of ‘officiers, clerical force,.. TSokeO 
SAIOr eee, OF SkT OS molies ccs eevee oe eens oo , 60,440 
Ya hida) og vedi Sao Or a eee pratt: 6 aks 6a ee 90,500 
TAXOS, ces eae ale a Manes RE se lw Saal ene ho Rael Sena Stes ‘ 4,020 
PRPC at dish poe ne 46 # bles ee alee eek eee ae 2,600 
PN UerGeeG 2 GLaCOurnt sy es eee eee 4 ae ele ate 6,500 
Expenses, stable, office legal and un-= 
ieee Oy ewe pane a es CRG Gad 8 ea era we 29.,°750 
Maintenance = repairs, buildings, 
machinery, horses and wagons,...+... e« 26,942 
PROP euwemeoss 20S Pues , oc ae wolves 
$2,483,156 





42,000 
98,511 
15,363 


lle 
5,000 
18,000 


3,000 
1,000,000 
1,240,600 

500 


60,070 
$2,483,156 


GOL 


ecirend motgelixA oft 
off ,S00L fF todmoood ¢ 
rarottatoge af yaeq 


2080.08 
361,283,388 


LOLE OM 1 uanKORs ; 
(nottambnsnt AED ta 


ro conalad tatat edt : ase 
cgontasd to ovols odd de gaa 


pee.28. g 











woo oft Yo w0¥ Ieoek? Sac 









“ laces 
tthe 








eee eee iusjsean 
"00,002 su gobo alba heck a lob cule omnlg «eo band 
000,COS eee eee eT Betua | 
O00. 00S oe ep neawheue cee ver. f onl 
ond, 2 Che ehabbeaens «> saa geeeee Lt 
000 ,.0& cesvebeseces cOBORIAR OTe 4s ow ,coe' rol 
f0S.a p00 belaslog ease » « bihend pO TNR emEMe “eo ttz0 
S{s. as Pe ee rrr re gy efit 
ANS caf | Neecedweesesace ens cg GOhORGhQGOT SanvonmE 
000, 08 4 cabvemdaarcnrseresesareces»« gQaoiMeeOuns 
: esonavhs ,atnwoaes a romeoled 
oes, f Cuedudiiwissceensede vane sheen to 
OOT ,bL seeeeRe B20L ~ 000,058 .qxe mottasineg10 
000 ,OOS cilvesat aot eaewhe seh 0s Gus was 6 Oe Oe Evbood © 
eoeyzeysenws ina ees pe 4Waiey Seem ef{ta 
eee ee eee tn betenewel ame id agsq 8 MUOODA 
a,ettolo ban estoektio » eat oe Lntooge 
atauooon eeok =. etdob “eh ot dha 
ee ee ee ee es ome . 7 
RLS egnthitiudenotinboonges M = oreo 
pean ged Yronlaoam , 
 ,Beopaw coated ? Ki 
PP Die RN Pe es cae ; 
savavngO0le eotada 000, OL ior fat ke 29 
weveeegnocrmiwolia bas soumtet eeel eolse 
oveoangeOeimotg eeonteud Yo dtaq Yo Inef 
[85,20£ cepcraserersevapsOOQL .fe,o0d wrodaowns 
Bers tus Lew? untbuLont. hed der e l 
S32 380: . een ne ee stew eee eB 
IOS, 00d — ue vs  ieblonvee ¥ yrot dal. 
oor. at oo e20%GR {astral .erabottto to ‘eedataa: 
O>>,08 Seaseee bene sree eee eg MQMeOLOe 20. eoitoLlre 
906,06 eee * pr OU ts 
30 oe PPNE Te ee: Poe ee Chad hess 
02,5 vet renee eda eens spans eeeeens OORSENERT 
C032 BBs scar gtd pt it tem feotetal 
: mths raol so: o' edeta e es : 
O2Y 83 vec cv vai Uilagd oWls AA se ueaEnnG a? TkOES! + | 
nae aaron ah ng r , athe pene ; 
326,56 cosceesenere nw eee eyront 
ok eee SOT einen e0eL azol bes tHowt 
oaf 780,88 | 


Dar tt ae . 





110 


NOTE: 

T Inventory bee. ab OOS piace wim pies ote vlate ls o's ae 09%» $270,560 
Factory pavrolls .acerued but not paid,........ Oe 100 
WNGXPITSA: INSUPANGG bu debe es nabs MOO + 6h ee tees 912 


From the foregoing trial balance and notations, Prepors a 
Trading Account and a Profit & Loss Account, writing off 2% of 
organization expense. After stating thb net profits for the 
current ycoar, make the same reserves for depreciation as were 
made at the ond of the first or preceding year. Show as a final 
balance at ercdit of Profit & Loss the surplus available for 
dividends. Also prepare a balance shect as at December 31, 1904. 


\ 


Ref * L20—2 e 





r 

‘ f 
it 
Hy 


3 


ani} fentt s 6s. woth ~Tsey att 
~£00r , [8 tedmoood ga eb TO 





on iad CWahe@ eae voles ep nee w a : 


e@ ea ehewerssetes eee nee 














i eye 
: Pe, td “ 


e savevcerg bing Ort 2. a 


8 etsgetq ,aaotiaton bas 9or 
to RS Yio Ratiinw ,tavOd9A zB 


odd tot atitorwg tom ddd aa 
otew es nolistsotqeh tot 66 


sot ofdaliovs eviqive . 





? a 
GG 
4 
¥ + 
’ 
has er 
es 7 ’ 
7 J io 
4, 4 r 
be fg 
icy ae 
Vis}, , 
’ 7 fi 
: t 
: De 
: ; 
a * oti! 
’ 
j) Fs 
> 
4 
‘ 


a jae 
me ep ae 


ee 


PROBLEM NO. 120. 
(Nive 


C.P.A. Examination) 


aad 


The following is the trial balance of Bailey & Co. as taken 


from their ledger December 30,1905, 


SORES b oily Bx. 0 eI he Ctra REY ES ek ROMs BL 

BGSGRVCCCLVADLS, ngeset heb s Bee kek once ae 14,900 

BOGOUNSS PSC VAOLSs peseuadestaensdc tacaane Bey. 10 

OS BORE TGOLSG 5 cas oh abs s Mh rr Bee mS Pees $ 2,006 

Accounts payable, exwesees TePrTerer ee Tae es Veier 

LOGS) AT..G. Per CONE eae Pane hha elds ce cerews 5,000 

Warehouse receipts, ereacreeses eh wae t eeaue 8,551 

Merchandise inventory, «sussnsvereserewones 28,900 

SCOTS. DOOPOLLis «ens cme mem Re OA Faas 20,000 

Mortgage on store property at 5 per cent, « 10,000 

Unimproved real Estate, secessnenoescscsces ° 6,000 

OeOre DLRGUMSS seen sc aces ae ae ews 6 koe ee 5,000 

Depreciation on store fixtures (1904),.... 500 

Horses Ad WARONS,«cenwceesessvetsrereens 2,000 

Capital stock, 750 shares at Sere ae acs 75,000 

Profit and loss, A ek ow oo owe wks 088 Ae sy 

Magi tasdy to) 7 a ey Se ee a a is 132, co 

Sy De Sr Cy ea ara ae 152,439 

PLOCOUNGhs ds 6 aw ee eeew ve te eee Saag me 8 oe ee 103 

RORSCS GL. GVET SCOTS, ccc ey ee eee cciuas a 250 

PEO tise sa 'gina'd-> 4 > 4 9 6 48 8 68 8 bees eeliees rey} 156 

PEND tw ie wile es ere ee 08 . Ae MRE + hike Feel 800 

Heat and light,... awn 6 Hee eis ema Sits ih me ile 375 

Salesmen and wages of employees,......: es 4,912 

Pr AO eS Oa Ata as alae VEG oP nib aces med 4,000 

Miscellaneous expenses and losseés,.....«e.8 ey eoo re 
$256,992 $ 266,992 


Merchandise inventory Dec. 30, 1905, $30,254. 

Prepare a trading and profit and loss account for the fiscal 
year 1905 and a balance sheet as at the close thereof, Reserve 
1 per cent. of the cpen accounts receivable to cover bad debts, 
a further 10 per cent. from office furniture and 20 per cent. 
from horses and wagons to cover depreciation. 


Ref. 21-6 ® 


164 


‘gd | a 


fetes es .00 & yollad to eoreLad fz 








y 
' 























Sif .e % Pee. Sees eer re - 
Ve ‘ > O0e€, af to OOo erate nr ereces espe’, 
O67 ,.SS ihe ee ee . 
500, ¢ | hee eee ee ee 
sf,? eee eee eee eee et) cs OD 
000.6 SOTHO Reh ew ene ee eg SMO ot “a | t# engsol 
L22,8 CVE ORTN REO eb ees er eweeeg Bg ~S Sevonto1sW 


0O¢ ,.8$ PONE OTe Ry ee we oe +<VIosneval sethnerforeM 
060,08 tree Ree Rie eww nee n ned eee e Ne TOGOTT e1oss 


G00, OF *, 3089 toq ¢ ta yStreqoug stode nO FTO 
000, 3 ee eee wee osereveeees -StRtaS iser bevougmialy vy) 
' 000,34 P TOO eee erent neon e ees eeens ee BOMUINED BTOS2 ; 
008 : ecveg({BOCL) eouutxit osote no stoltsioesged 
002.3 ; Teeter reser sete ee ss ase nh ¢ SITORSW bas eostol 
000,27 - seeeceengOOlB ta cetade OST .w#oote Letiqad 
eVS 8 to ee eer wes enveng pOUEGING ,2eo0L bre FYOrT 


L@8,S8éL£ i ee ee ee Ree nesveon voce BOBBITT 


STO TEEN oes ent tee there ed resesene eg @Olse 


a | a : Die ee eee yo re ee edrsooeld 
oes ; eee eaeewmeet & e@eenerua areeeStotea Isv0 tied. etaen 
i aef STUMPS E RS eM EP emo eee ee oe eee es ews ee BOXSET 
906 ii Pee eee ee re lt reid 
ove *. Wott eevee seecasenererameag tight bag tasH 

Sie.d tetceenaes 299YOlQMOG to sezew Bae momeef{saR 
000.2 Citvereesseseececseeeeeg QOitaiog @ te9ttt0 


se aritasitisinapeis: | Me OS ans ee fas #9ensqxe suoonalloaeti — 
200,538 $ See,agse | a 


»P38,05% .30@L ,.0& .o8d yrodwount estbnarortsM | - 
feoelt eft rot tmyoson eeol baa tito | s paibets 8 9. Sy ‘<9: ao 
oviseot ,.looteds ezolo odd te en soars eénsisd « Sra It xe 
89095 bed tevos ot sidavisoe: e¢nuoses weqeo edt to Epa te 
-trieo 19g O8 bas stutter? eaitto mort .taeo teq OL ted - B 
«moltstosiqeb eves o¢ anogaw Sas asetod mort 


6 3=f[38 «ten 


OR 
‘ 





sor. 


t 


PROBLEM NO. 121. Lig 
(N.Y. C.P.A. Examination) 


A land development company organizes with a capital of 
$30,000 of which $5,000 is issued for organization expenses. 


The company ppurchases a tract of land for $50,000, giving a 
mortgage of $34,000 in part payment, and expends $13,000 for 
surveys, grading etc., part in cash and part on book account. 

The company also erects two similar dwelling houses at a cost of 
$13,000, part in cash, part on book account and part on sites 
within its land, representing a further value of $1,200. One 

of said houses is sold for $9,000. 


The sales of lots amount of $30,200, including purchase money 
mortgages taken to secure part consideration on which interest 
to the amount of $750 is received, said mortgages being in turn. 
pledged by the company for a loan. 


The company pays $11,500 on account of the $34,000 mortgage, 
to release from incumbrance lots sold, and gives notes in settle- 
ment of book accounts to the sum of $4,000. 


The cash transactions are as follows, viz: 
Receipts Payments 


Gafiital stot, ....cer> -» $25,000 Organization expenses,..»$ 688 
Purchaser's. aecounts,.s. 20,825 Land purchased,...-...-- 16,000 
ROUGH p55 25 te eeaesengess  2e,00Q Surveying and gradivic,.. 6,000 
Commissions and fees,... 905 Accounts payable,....... 1,000 
| BiL1LS PAyadlOsasacecnsae &,000 
Fonstruction of 

GWOLLIMES Piwtcecaceess  T,000 
Mortgage payable,....... 11,300 
TNTCPSR Cy wee e nev ee eamee se RT LY 

Expense, rent, salaries 
CUGCKG Rae a Hb eg e vie ves ee 7 OUD 





$54,144 
BG LONCE as bine wet ae a eee - 4,586 
$58,730 $58,730 


Inventory: land $42,000, dwelling $7,100. 


Prepare ledger accounts,profit and loss aceounts and balance 
sheet. 


Ref. 22-4 


164 


py Ue me . ee”) ie re it i. Vivian 7 A el 


‘ al / 




























s r 
reed ¢ | eur ‘y 
ie 


A Me 


ey 25 ee seer Low wasaons mes 
(nolsaninexd star ou es 7 


to {asiqcs a ditw sextargt ¥. tm 0088 a 
seearegxs mottesinas7o 101 boueer 7 x0 y 


fee > ee ae 
ry — 3000 ,088 tot Baal to. Sonus ry goeadon iq Yenc 
| .5f3 ebnogxe base ,tn 

: ites Ae “wood so t¢aq bre Mteeo ck 
to t¢00 8s te esavod niliLewb wefinte ha ele yn 

estie mo trsq base Inveoos Mood no Heat 3 mons e089 ‘east e2! a 

an©® .008,f% to sulav apt at 8 000,08 tot ed. 

& sot bfoe “bios ef 


2 Sarthe - %” 
4 7. ; 


yonom searo tied ct? Sabb oud ,008, 08% Yo tnvoms atof to : o. 
teoxotat doisw no sottatedtanos ttaq swgose Sweden pal ag 

vty t ret oiied soysgdiom Hise ,beviesss ef O8y to. jane - 
insol 8 10% yteginos ont vd be eta ; 


.oueuttom 0 106382 ett to nema m6 O02,£54 eyaq vetegmon edt. | 
-sitsea mi eoton eovig a .5Loe etol sonaitimyont moxt eesolet of ' 
: to mye’ ent of etnsooos vwood to teem ; 
ssiv ,2woffot aa e%s enottogsensis deso edi? 
atcomyad | |  etateoon 
e339 oan ROR noftestasgrC 00,5 intends 


oOo. Br 28969 OO N TE Dressy brat 288,08. $e, 80 uo = — 
090.8 es .antibata base gatyewuse 000,ST 60 ge teookes Cemeneee 






000,f bene e vey Qld@yag eiasoooA OQ 044, 899% bas enol: | Darn 
090.4 ressvovevegelCayag el{td AL F ; : My 


to molitomrifenot 
060.7 o¥eccedeve ceeenne. tewe 


OOS. ££ see ees g@ldayad egaese ton © 

Civ .f ccccceervaseey mes CO UOSIL 4 oooel 
. veivelsae ,gnet ,eenegxa _ i | a Cf 
Oe at chen cece see een vasasoue . ' ed a ' 
SOi Bag .. er 

d8é , > eae oe *e 6 osevesese POMC RE of ul 


O27 63% | O28" 88> a 
sOOL TF gatifews 4000, Ere) bef rytotaeval: ‘a 


somefad brs essocsa eeol baa chee heet veabet ehaphk ary 
joy is ee <8 vl | } : 
| “0 ee 


yall 
[a ee 
4 ? oe 
1A + 
ew me) 














PROBLEM NO. 122, 
(N.Y. 


C.P.A. Examination) 


113 


The general ledger of Ward and West at the close of the fiscal 
year ending Slst December, 1906, displays the following accounts 
and balances; 


Residuary 


Cash 

Bills receivable 

Bills payable 

Accounts receivable 

Accounts payable 

Real estate 

Machinery and tools 

Furniture and Fixtures 

Inventory of materials and wares 
at Sist December, 1905 


Purchases of materials and supplies 


Sales 

Investment securities’ 
Taxes 

Insurance 

Salaries of partners 
Salaries of clerks 
Wages of workmen 
Traveling expenses 
Discount 

Light and heat 


Freight and expressagé~on goads sold 


Office and sundry. unclassified 
expenses 
Baa debts written off 


Ward, personal drawings in excess of 


salary 

West, personal drawings in excess of 
salary 

Ward, capital investment 

West, ‘ 

Goodwill of business acquired by 


purchase 
Income from investments 


values at 3lst December, 1906 


Inventory of materials and wares 
Unexpired insurance 
Wages accrued for part of week 


164 





Dr. 
13,050 
6,300 


14,040 
28, 800 


7,200 
2,160 


39,600 


61,200 


10,440 
2,466 
414 
8,000 
3,550 
20,706 
1,530 
486 
612 
1,638 


1,332 
1,404 


e,ec0 
se he) 


15,480 


243,738 


ieee 


Cr. 


5,000 
6,948 


96,500 


£25 


cif Sl Ou MaIgORT 
(xottsnimex® .A.t.0 oY) 

shel fe19n99 oT ° 
e 


fele gntbhbae iw9y, 
 geeoneted Sas” 








fsoekt ort to eeofo edt ta teeW bas Biel to wt 
gircuooosn grtwolfot sAt evsiqetds ,90ef ,tadmecs 


oD oT Miu aa 

005.8 ofdavieset effti 4 
000,28 | , efdeyseq ef{ita@ | 

O50 dL eldavisoet etmoooA 
9b¢,5 | efdaysy etmroood © 

008.85 ; states Ise 
908.7 efoot bas yientdosm  . 
Oaf,3 a aeyutxtl Sas otto a 
eotew brs alstvetem lo yrosnevnT -— 

596,26 BOCL ,1wdmeoss” tell te 

008,10 eetiqquve bas esiatietam Yo eoesdo iva . aa 
COE , OF . ealad 

ODS, OL gettiaveoe tasutaeval 

56), Bis eexsT 

Sfh eons wenl 

600,5 ‘etontieg to eoltelseé ‘ 

O38, asixelo to eetesist 

aoy , Os nonmltow to esas 

O8S —f eseaoqxe gatleverT 

48h : tnvooe ld 

fa tse bas geaighi 


305,f£ Bloe eboog mo-sgeesetqxe Sna trated ; 
bettteeatons yubrmue bas soltto 





SéE,£ eoenegqxs 
pOs,f  . i fo met¢inw e¢deb 58a 
to esooxe at saniwanh Lanoareq ,S18W. 
oss,8 : wisise | 
to eveoxe at euniwarh Lanoeteg ,seoW 
OLL of | _ytetse 
009 .0e dnemt sev (s¢igss .Disw 
000, éS | . _,tee 
yd bettupos eeentaus to Lfiwbood 
O65,¢f eesioturd 
och. | , etnemtgeval mort emosal 
Bo%. 529 Bet od8 : 
S0CL ,sedmeoed gel ta seulsv yiavbieeA 
avy .3a aexew bre sisiietasn to ytotaevnl 7 
ost .- gonstvent betiqxenl 7, awere 


&Ss Heew to tiaq tot bestoos Begs 
«bol ; | 





Reserves to be provided 114 


Depreciation on real éstate------~-----------~-~------.- 1% 
“ " machinery and tools-~----- Sit io the Bategs with 64 
. " furniture and Pixturesen—henn-nn-- on nnn 10% 


Bad debts, including accounts written off, 2% of sales 


Prepare a business and a financial statement in technical forn, 
resting the trading account with prime cost only, treating the 
income from investments as supplementary to net profits on trad- 
ing and treating the partners’ salaries and reserves as appli- 
cations of profits. Profits to be divided among partners in 
proportion to the capital investments of each, 


Ref. 23—~5. 
164 











9) | my. bef 





a 


; 7 i ge mottergouqed 
wa dthtdnmdgindwsge noeeeG L608 bas vreqtdssm Ca ee “ “ 
OL ae aetaepdodaomnmoeQOTUI Els Bera erutiatwet 8 ” es i. 





ng exantuaq goroms bebivih ed oF etltotd «etl tor” 
close to etmemteevai Latiqso any | 


~kiqas as esvieee Snes es6inetse ‘ etend eq days ‘oso } 
Yo anolsao — 
3 mot 104: 


oe a , 
; 9S~ES toh : 
_ er | hall a 





PROBLEM NO. 123. 1165 
(N.Y. CeP.A. Examination) 


A land company is incorporated with a capital of $50,000. 
It purchases a tract of 104 acres of land at $500 an acre, paying 
therefor $32,000 in cash and giving capital stock for the re- 
mainder of the consideration, and at the same time giving a mort- 
gage to a title guarantee company to secure a loan of $35,000, 
which is to be satisfied by partial payments as lots are sold 
and released. 


Obligations are incurred on book account as follows: for 
organization expense $619: for grading and paving $23,400; for 
water mains ( a separate enterprise to be reimbursed by service 
charges when ready for operation) $4,000 


Direct expenditures of cash are made for organization ex- 
ense $537; for grading and paving $11,060; for water mains 
1,020; for maps $'700; for advertising $1,200; for salaries and 

expenses $8,679. Settlements are made with creditors by cash 
$8,784 and by capital stock issue $10,000; the remaining capitol 
stock is issued for cash. 


Lots sold on purchase money mortgages $24,857; installments 
collected $9,442; cancellation of title company mortgage on lots 
sold $8,050, and purchase money mortgages pledged for loan of 
$10,000. 


Interest paid to title company $1,849; interest received on 
purchase money mortgages $924. Inventory of lots unsold, in- 
cluding improvements at cost $66,575, to which latter 10% is to 
be added for appreciation of value. Maps on hand $500. Prepare 
(a) cash summary, (ob) skeleton ledger accounts, (c) profit and 
loss account, {d) balance sheet, covering the transactions above 
stated. 


Ret, 251. 


164 







art -2SL OM URISORT 
is | (nottaninaxd wAe§ed « 


- -9000,.08% to Laétqao eee ioogd el yasqmoe br a ry 

anfysq ,otes ms 0083 ts Snal to sexe if to tosit s eos ; 
“ot odd ~0t Moote {etiqas gaivig bea oT0BERnOS 8EQ eueds 

-ttomt s gaivig emit omee edt ts Dare TO, > ets Laer 
1000, 38? to maol o eis068e of yn i) 


S 90tn 
bios ots etol es otnesnyeq teldeame of beltett 


ae i) 













Ot sewollo? en ¢rrooos aeod mo bortuont. 

tot ;00,289 saiveq bos anthers rot :0L38 . 

95ivice vc bocwdmter ed ot gebrqretne staiaqos art 
GO0,.8$ (nottatoqo sot yb 


+xs mottestasgto rol sbem tig 3 fleso to sets haeqxe to 
' ff 


entem totaw tot :0e0 itvsq ine ar oore 107 vee 
“gadets reoE seg 


hos eotthtsea 10% 008 grevis “ot ; foe, 88,08. 
Hens ts stot Lbot9 43 Ew ehan ots etroneltsor vee 
fottqre antaksno< artt 7000, OL% oweci sfoote Latiqss yd 
efeno 07 howe! ie xsote- 


etromi{ls ‘teat :¥86,282 eogagdrom vecom eacdotug 
esol no Syucgtiom yasqmos elLthF to pia Pot jordin. See Saag 





Abe. bd Ha 


¥, ag ts 
3 vaste 4 
»* oe? . 


_ 



















to mao! tot hbenbelq a vero eeatonig dns 


fro howhooett teototal 7;028.£9 yasqmos jon c8 toe relaay a 
' ok ,bloeay etolL to Ytotaevayt eeanadiom yortom ¢ 
ot “ae or tottel dotinw of nava,B0a 3 ween ta Perit oh 
Siaqext .0089 baa ao eqeM .erfev to notsvatoeyqg 
bas $ftorg fo) setnvooos tegbel motefoxe ret tiles» 
ovede enolissunat? eft gntisvee on aonsled 







PROBLEM NO.124. 116 
(N.Y. C.P.A, Examination) 


At the close of the year 1907 the books of a manufacturing 
company show a credit balance in the profit and loss account 


OL, +> ee Se eo $eeo, 000 

and a merchandise account,based on appraisements of 

inventory at seliing prices,of,...... < 46 ee ee § ieen 36,000 
_ but an appriasement of the same inventory at cost 

Picea would Amount toy. .secneseccccvsecetesesyeerses 27,000 


The trading income, and profit and loss accounts 
for the year 1908 show the following balances: 


SAVES pds ELodieans Re ire eee ee ee ee Tec re C 100, 000 
DROSOCING VOR 105 VES baa 6804444 Ree ch eee tees eee eet wee 1,500 
ROTUrNS oN SE DLOWENCES jane nce ee en tase oreteeceerneeenes 500 
PURE a ie ae a 4c hal AEs Cede ka ee Eee OE 75,000 
Frei gnt OF PUrChases, oveeoseancsecsersenrscernaeveses ee 5,000 
DiSGOUNe. OF PUPCHSAES , oo.<vaweedaevce verte Sy te ee 600 
SMA a GHOCNBSS a cw eee heehee wn se aee ee eee en eee es eds 2,000 
SOLLINGrERONSSs fase ka ee He v0 Ss Sliee © an body deeds meee ley ke 5,000 
Ort te SNE PSNSPAL OXPGNSGS, asi wcczesenscrntcsnanenes 10,000 
TRSULAGCG Cie dak peeked de inten secn hi mMawee bps? rele le) 
SORCE fa Wk « Who Ebiss 2 50 e + Hew Os be dha 66 Cle oe ey eae ee ela te a © 200 
Depreciation of machinery, fittings “and furniture, ... 1,000 
Accounts written off as uncollectible,..csccscascvcece 300 
Interest on notes and accounts receivable,......+.. ; 1,900 
Interest on notes and accounts payable, ...veccscereee 700 


At the end of the year 1908 the books were clos- 
ed on the basis of an inventory, appraised at selling 
OC IMCL Ty 6 ob aNie  e wid wise ee ce ek eee bee ea ws . 40,000 


If this inventory had been appt raised at cost 
OPiees 1h WEG DEVE GMOUNTSd Tihs de. ocean tne Heb eeeees 30,000 





Prepare ‘from these items one statement showing the correct 
trading and income results for the year, and another statement 
of Profit and Loss Account opened with the credit balance shown 
by the books at the beginning of the year. 


Ref. 26-5. 





























Sis SSL. ou MAISON a 
| (okt entiaxet Aged oo ae 


lilac hiciad a to exlood oft VO@L teey ont kh 
” deaosoe ceof barn tttorw edt ob eonstad : LS 

000, O88 Poetacs'eees 4s 0 dd lene eae eee sae 

| to edcemoetsiggs mo beead,trnyooos Ssekbme: 

000. df pe ebeesvesce ses 0 cu WE EOOOL aE gntir atte ah 

geoo ts ytotreval omee oft to t 

000,78 PeTrerTecerrrre lle 


edrnsooos eeof Sas sito beta cha latan avd oT 
;neonselad gniwof{lot emt wore 7 


000, 00f eCTTTTer ee, ee ees ee er 


006, eo ereee sed eer ewe bewe ess 60 ees 660b 64 ROL EE tee SO OnaG 
008 revocesceseveesonseeeseesesseeeeoonswolls bre saristen 
090,87 Perereerr rrr. Te Pee ee eee EL eR we! 
600,& cece cccernesecusbeseessanvevevesg@OGanotg nO: SISTOst 
0090 cous cere eee hee eRe ses abev ees cns » CORIO fto troo2krd 


B00. 9c wees semevrbeneesemweboeseneeseces sg 8Oeregre gntqgita 
000,.¢ Screen eee ste en gh Mew NS oes Ole ce 6 <4 0 0 wg On Me erie 
O00 ,Of oop eevenasosesnevseses ss « gSOSNOIKO Levene, bas sof TtoO 


00% , oe POURSURVECETC CET Teer rT TT Terre eer ee es 
OOS Ce TETHER HEH ORE HEH CREPE HD HERE HH HEH HEHEHE Hehe ee we : 
900.1 ooo Outi? bese agaist tt .yrentdoam to noftstserqad 
20 Sveebeeaveetas op Q@ldgel Looms #8 Ito setyivw et¢auoooA 
008.4 ws esvceevees Sidaviooes atayooos bas eegon mo teotosnT 
2) ravcevesvecnee, Oldsyaqg atnuvoogr Sas eetom m0 sgoretat 


~2ol9 o1ew efood edt 80CL tsey edt Yo bas edt ta ja 
) antifes és beatetqgs ,yiotmevat as to afead edt ao be 
Goo, OS waccesas dion Tildltn seHeesec eda sve es gae gntsecoma .290faq 


teoo ts beetstyqa need barf ytotnevnt elds tf 
O00 OF #4 aie amare herawene evan bissow $f asoltg 


pone: 


' 


too rrtos oft uiiworfa tremetate ero emoti ceeds mort steqerT 

Seana Waih a bas ,1sey odd xot edfveet smoont Snes antbart 

nwode sonsisd ¢thetg eft d3éiw bhenego pe bry He + 2eol bun titord to 
~tsey oft to geianiged edt ts aslood eddy yd 


* &-68 * tox 
OL 


PROBLEM NO. 125. tL7 
1.Y¥, €QvPpAy! Bxamizviation) 


On January 1,1908, the condition of a small trading company 
as determined by an examination of that date was as follows: 


ASSETS | 
Pew iain Or £4 Kt edieg ese sccd xs sasseaneeeess  §2,000 
PEG ige Sek tae cee ee whale Ce ewe 4 O08 be oe OR eS a 500 


Netes receivable ef @eesedesee*e@eskvecscgee#esveeaee#tsreeeeete ewer @ e 3,000 
ASCOUNTS: TOCELVADLE, caves ec bans sc sce 4 cele lath wmrsietwie 5,000 
Merchandise on hand, 2@eesevpeaneeaeeeosvspeaeseeesese teereeeenes @ 4,000 


$14,500 

CAPITAL STOCK AND LIABILITIES 1G pea 
REM UG LOCO eee eG AS eeG ERG «bh sacs ens ceeae. BO yOO0 
HOLBG) DEV ODLO”™E sSwaiew eee aad eee tenes eee ecsnsenns 3,000 
ACCOUNTS PAYADLE, o.e cree ev creases seerrcreccccons 6,000 
Sia AOE Re ah Mahe aa o oie by ao ale Oo 6 0 ee ee ao gSe 4h-0g eee 500 

Co IA, BOO 





During the month of January the bookkeeper made all éntries 
in the cash book and in the sales books, but made no journal en-~ 
tries and did not post his ledger. In addition to the each tey 
appearing on the cash book and on the sales books the following 
transactions took place during January: merchandise Berenaced 
on credit amounting to $6,000: notes payable amounting to $6,000 
renewed, special allowance of $500 made to customers. 


The credit sales journal had two columns, one for the billed 
amounts and the other for the cost of the goods sold. The billed 
amount was $8,000 and the cost was $5,000. 


The follawing statement gives a summary of the cash receipts 
and disbursements for January: 


Cash received: 
Sor iectead: from ers tomers, oss esas cases s A. alan ep tine 
Colleched en nate receivables ory, ose cee veeas 23000 
Collected on merchandise sold and not enterec on 


a0. ¢ecboalks(costeprice $500)). 0. be langn, ameani ‘ 600 
Tobalweagh recéived;. 60, ae. ¢ PORH. Wes ole 866,600 
Cash payments: ‘ | 
PAPareeeeen OCEH OVERS jyc cases sss. cacestasence OS . 45 
ee Nias ao oo 6 ob ae pied oe oko oe 0 hb le eae ee 500 
re a celal ah 4 Wo are. 6ie. 8 0 sig i ele ae wel ewe a eo OPW a he 200 
SUIT PRONOUN G OR yess cpus rdedee reccess wh be webs eee 300 


BEGCOUNGS GAELS ee sve cee emer acer sans ebernee 5,000 
; ote Gleburgementc,<.-ssenwaesscoessseess $6,045 
Prepare balance sheet, January 31,1908, and statement of ~~ 
profit and loss based on the book value of the merchandise. 


164 





a Fae ‘ 
: a 


TLI | 28L .01 uadaort ‘ 
(rottentmexd .A.T.d a 


yasgmoo pathsid [feme 2 to mottthbaoo edd 4& 
:ewolfot es eaw etsh tant to mots: 








tayact a0 
Heainroted 28 


A 


ie 





etaneds,.),.. ued 
900, 83 . owes ses aie ee : - ets Levi? 
o0¢ i ae 
090 ,.é Oc cee eo etet heehee ee + 6 oe Mewes v6.5 ee eeto 
000,¢ cc bke 60 aN eS aes One ee  etnsrooaA 
4 000% + oresere tigi tn 9 aT 
00d. 3f¢ ce re . 





ONT TIIIGATI GHA HOTS IATIGAD . 
000 . 28 sane coupe eetntcs loans a testees 
000. ee ep Po eetow 
000 (9 0 <0 6:60 6 le alan 4k 0 e/a es eek Ole ee BtiHoOooA 
002 11a bebe RRMA snp O00 4+ DSS ERmiinE ae ee 





003, are 


= ae md 
es re 


settine ffs shen teqeestood ddd yraunes to dénom "gis geeks 
-19 fantyot ox obam dud ,etood esfise odd mi Sxs food mass oft at 
cointae odt¢ o¢ moktiobhs al -1eegber eld teoq ton bid Sma estat 
gaiwol f ot oft silood eelse end mo base food reso eat no alien 
bocarotvg sethasdotom .yteuast gaits soalq Mood enottosensts 
000, 38 ot aiittnvoms oldsyaq aston :000,23 ot Batt easort tibet ro 
-evtemotess ot ebem 008G Yo sonawolls Lstoeqe (sewwnes 


offic edd 10k ono  .eemios owd bad Ioamiuso,, esleae giboqw edt 


beffic edt .Sfoe eBoor ed? to teoo okt tot. tedto sit Bae” sinuons 
,000,2% esw seos edd ‘bas 000,89. eaw Geyer 
2tgtosen deso sit to rise eo eeuta taometade gaiwes {iol edT 
i xot edremes woerb ae 
:boviesst des — 
000 BO en a ee vs dele cow as eptomoteuo: mort bstoelLoo 
N00,.8  caccabsrvevecdua soe Q@Qidavieoes tom nO betoellod 
to Aeyedns tom bre Slog selSradotem no Setoelifod 
009. ++ ve eae oo big $209), sloor edlse 
BOG 9G vee eee v ene er steers eg DOVeeoet HESS ‘Tete? 
A | ae  sedmenresq desd 
ab coh Sereerrrrrrr rT: or et he ae eston no testetal 
O02 rrr: Pe ee ee rer eee Py eS 
00s ee OA A PE ae 
OOS Dream ese rene eeseserrereteeserewe goVENisgNs. yrbane 


j 000% oes os ssasahi Clos eet eer reer. 
280,82 vee eessserrssesecce cen qetmomonice le Leto? 
See tnemetete Sre ,S0Cr [5 yusumel .teede sonmeled omagend 


ef bmso vom eit to outew wood ont iether mos poe ditov 
























PROBLEM NO. 126. ood 


OO 


(N.Y, C.P.A. Examination) 
The output of the A. B. C. Coal Company for the year ending 
December 31, 1899, was 1,567,853 tons and the trial balance of 
that date was as follows: 


Plant,machinery, etc. $5,000,000.00 Capital stock,. $5,000,000.00 


Construction (inpro- kn ae 3, 857,642.76 
O6G5 eee s shee pes 85,790.50 Accounts 

Bills receivable, ee. 63,000.00 DAY EAOLE «iiss 89,451.26 

Accounts receivable,. 21,650.29 

OMS PRES. oO eNDIT Fe 4 98, 752.51 


Materials (10% inven- 
Bday ) Suivenlary. Dees 145,853.20 
Coal on hand, Jan,l, 


ee WORIe 750.06 
WARER eich ee ewenen ss 1,9735,3576.89 
Supplies (10 % inven- 

SOP THEA HPD 2e.. ve 389,402.20 
Injuries to persons,. 10 , 000.00 
BROS ES soe ewes ws 45,750.00 
InSUPenete sys fea 8» wn 20,482.00 
TOME POC ASS x we sates 26,597.40 
Office expenses,..... 29,872.50 
Leger expenses ,..s.2. 06,751.09 
Dividends pews l hoc aces 150,000.00 


Rentals and royalties, 262,530.20 
Freight outward,...... 061,951.17 
Horse and wagon hire,. 109,532.10 
RVVOWENCES) oe eek eo weene 94,321.60 
Miscellancous, ...ceees &,750421 


$8,947,094.02 | $8,9 a7, 094. 02 


Goal on hand, per inventory, $15,862.70. 

From the foregoing prepare a balance sheet, and income and 
profit and loss account, the latter to show gross earning and 
net earnings. 

Ref. 2885. 


164 


P= «OC use Lee 
- bo he e 


00.000,.000,.88 . ~<zoote Ist hgqsd 00.000 000.88 080 av ose 
OV.S838.NG8.E 6.45... ++ 29L8 ) mottorttenod 
' etrwosaa 08.0e7, Si te sieveseasense (aces a, 
S3.f05,08 . iy ud" ee 00, 000.28 e+ee,0idsviones effta 
28.083, £8 +: ofdavieset etasoook 


Sif 









baa ts9y add vod vorsamod t800 a a “oA pid, 0 ate 
‘to oonalsd fates oft S5a8 anod ona aa 
:Bwol 





is, Sey, "Be ‘ Seer caren enesese elEBOD 
~coval ROL) afLatrotsy 
OS .€38,.gaf etre eeerseone a(Tiot . 
is wf.ael . Saad mo {809 
6é.08T, Sf ect eawnesense g Ceol | 
8 .aVe eve f ev eee Peewee eee .2onaw 
| -mevalt & OL} 2ehlaque 
OS. 805, BE weer e een wer eee (UTS 


00.000 , OL «<enosieg oF estistat 

00.08%, 2h eeeseneseens QOlts BS, 
00.862, OS teers eves es ge SOMBER 

ob. 03.08 teen eee eens ene BOXRT ui 


Poe bres veeee g@Oomegxe yr paabs 

* 0S soe eee ge AOSMNegxs . faxed 
00.000, 0a.L perso ew ee pQoMObivid 
(O8.083,S38 ,esitfoyos Sue efetacd 
Tl. £80, £0 sess gDiswone dig tert 
03,.LSE ,d¢. *) wececceaees gBOOMMWOLEA | 
ESn2eh.8 | “nis+ 9yini RORRRLED OREM 


\ 
el ea te a ne 


80.200, "82,98 es 80.200 80,200,130.88 


waar mere eee —~ mer SP tng 


ae 


.OV.858,81L8 swtosnevnd 10g e brvsct no £200 


Srte omoont San toode cometed a dmnbite gntogeso? ad¢ mort 
bra gainnes anny wode o¢ vettal edt .truosoa eeol thor leche 





PROBLEM NO. 127. 119 
(N.Y. C.P.A. Examination) 


The trial balance of the Vincent Manufacturing Company as of 
December 31, 1906, is given below. Inventory December 31,1906, 
$90,000.00. 


Prepare a statement of profit and loss and income, showing 
(a) cost of manufacture, (b) cost of selling, (c) cost of ad-~ 
ministration, (d) net profit, (¢) surplus. 


TRIAL BALANCE 
DL eneunes,. CVraee,iacsecerweseeessales § 4,030.00 


Entertainment of customers,«.crcese 2,000.00 
Machinery inventory December 31, 

L906 ge 6 ds ee es SWAvate ws 4b 0s tah 40,000.00 
Tools, inventory December 31,1906,. 8,500.00 
Patent inventory December 351,1906,. 21,000.00 
Patterns inventory December 31, 

gE se aS ree ae eee ae 12,400.00 
Merchandise Consumed, .scccrescvcece 410,000.00 
BULLS VOGGLVOULG psc tn eee ue tata eaves 5,050.00 
Accounts receibable,....... eae ay his 250,000.00 
Insurance; 

Machinery,tools and patterns,.... 500.00 

Merchandise, +++.-«s bee Ye-a.nolae 650.00 
Employer's liability premiums,..... 4,000,00 
Tamea, personal property, «<ssreevee 1,000.00 
Interest, General,secscceccceveceees 4,470.00 
CAS bas be arash es ee eee ena @ 45,000.00 
ROT OP OOUGUI VE, + ics het tan ewe “ere 300 , 000.00 
TLAVORSONDTOCUCELVEG, 4 slec sc edie ee wee ¢* 35,000.00 
POWGT Sb als 6 ee kw dle areas er piatwiets 21,000.00 
HEOALOCS 5 DACHLNGYY , es ca sees Cea ees os 1,310.00 
FPOCLOPY SADONGCR soe rss nccens Lag alee 5,010.00 
OLTiCG DEY POLL cece v dec casaevivae ee 18,000.00 
inventory January Lypl906,s..srcaees 75,000.00 _ 
MOPCHANCISG SRICS bce hive ek vow sa eawe p1,048,500.00 
BLAGWENCOS 5 o's 's)s vias ws cla pied Eero ae ee 10,900.00 
Orifice Furniture and fixtures,..... 5,700.00 
PRiarees, OL TIGOVE , ouls 6 vas 0 ade eee - 15,000.00 
POSTON cc eae svn ere een sedan eer 2,000.00 
Telegrams and OS ey a ae 1,800.00 
PORMSCUION SNC Sxchangesscsevccreses 700.00 
Stationery and printing,..... ha kes 35,050.00 
pk eas Oe By a oe err 23,000.00 

 BPPOLGRE SOUL ieee ees bose POS Se eee 10,000.00 
Cartage @nd SOxXpress,in,ccrescees a 5,750.00 
Bonding of employees (office),..... 250.00 
Traveling expenses (salesmen),..ece tt, 900.00 
Salesmen's commission and 


Salaried, s+. Pe aT ea a'-» we Sete tie ules 6 ‘ 40,000.00 








to ea yaaqnod gnturtestunaM taoont¥ edt to | 
,O00L [2 todmresed yrosneval | 


aciwode,omeont Dag esol bas ti toxwq to 
“be to teco (59) ,artilee to froo (d 
oauiqure fa) et 


HOMAIAG JAIAT - 


Fd EW edewereccrecoresegd 


00.008 ,630, £3 


«VSI OW mara 







(noltisalmexd rAsded 2a | 


00.000,5 
00.000,8 


09,000, 0 
00.008 .8 
00.000, £8 


00.005, Sf 
00.000, 0L3 
00,.069,¢ 
00.000, 0&8 


00.0028 
00.083 
00,000, 
00,000, £ 
00,078, 
00,000.48 
00,000,008 
00,000, 22, 
00.000,£ 
00.0L8 .£ 
00.010,€ 
00.000,8f 
00,000,289 


00.00, OL 
00.0074 
00,000, 8£ 
00,600,8 
00.008, £ 
00,007 | 
00.080,5 
00,000, 28 
00,000, Of 
00.081. 
00.0289 
00.006 TL 


00,060,058 


i ae R DE FS Skype rey 


ee enereceseseneeeegeOlse SalbneioteM 





































»woled mov ig. | 


pane 
pred 
omg ten (6 


eeereeee BIOMOSeUD To” ame | . 
.f@ tadmeoed Crodrawnt.yoontgnd 

* Sevres eeviserevtsveesvsdes 
.d00L. f& tedmeosd ytotaevat ~eloot 
2.0001 LE redmsoed yrotnevnt tae¢ed 
até isdmeoed yrostasvat a | 


tresevcercesce, bomvadoa oathradotom 
att PETER PERTeCLiae efdavisoey effta 

. dad teser BInKoooA 

ssonstvenl 

eove,etttotiag bas efoot.wenidoalt 
SP eC Ce eeHeveseneset any Se. fhaadovett 
eves s, ommtmetg gtilicsts e' tevolqma 
breerrenee eg YI TSC0Tg f{srnoe ‘eR OXST 7 
see e eens ees aeeese gL BTONOR, sete tnt 
Fe OCR OHS ETE ROP eRe Se BAA 
Petes were ress eeren g OVE fd 


Si vophene ane 
SURO metre e wee ewes nssevene, THWOT 
rereveceocsesesee te toninogm ,etisqeh 
ee ee eseecewerserce g BOBNOGKS YTOTOSY 
treeereeereseseesosellOt YRQ BOtttO : 
ovseeeesee GO0C(Gl YtsuasL YIotneval | 


Reo eeeeceresean ng Gl 


*eeeteee eve ee eas eesvescesse  COONMWOLLA 
osuesqgtOmrtxtt ovut taut gattto 
Osererasresecese STOOIIIO ,eoltsals2 
nes sate peehes Cores SAG ee eeee eras 
eowvewonee eg AON my > ne beYet:} amergofot 
were eee eee eg OOM 9x9 a8 notsoef{i[od | 

covscecressgatttialtq baa wrenotsase — 
ee ee 714 
oe he ee tee eee Sk 


xo Bes 9B | 


reve eases e & 


cuwuogl (99 fk?’ 






Serr .) eer 
aig ee ¢ i aes 
” “V ‘ a yeah 
a 4 7 : OTT a ( 
oe og iP 7 oF 4 ahs 
FM a: rid 
ved hh tae iY 
-* é - 






BLLLS: PAVSD1G, «0. ss 


eeoeev@e7n#ee#ten@ee#eeees# 


ABOOUATE OR VROLS« « oo» otsvleuts dp iano 


Surplus,...«. 
Capital stock,.. 
Director's fees,.... 


Cartege, out,.. 
Discoants, trade,.. 


Retin sal6s Account, «sas. 


Ref. 


L29=2. 


eee 


ee 


eee 


eeceeoeteevwresee eevee 


@eoees8 


ot*e@eoeeeeeoeeneesoweee eo 


eeepenrt he oP e880 


eaeeveee eoeeoeef 


eoeta@eveseeer eto @ 


120 


; # 99,050.00 

43,000.00 

43,520.00 

és 200,000.00 
i$ 1,500.00 
4,300.00 

6,300.00 

41,000.00 is 


“$1,440,370.00 $1,440,370.00 















| 004052 oats 00,08. Ob, f arial 


/ a eae ee Pe 
4 » i ¢ 
Ye ee 
eh aK i t : i 
‘Q a ae biehy Wang 2. Ss Ait ie 
J LU 7 1) Rao ey es 
ni. on ay ly ong M 9 wa eva ny 
ug oy piv ay a | it 
om, aa cub ‘ g 4‘ ae a 
‘ ree a 
ay be i i ; "7 ¥ . ‘ ae 
ae o) ey phe Ue o& sa 
uy Gy CF dace a0 bie yy, 
a ; oe sal 
Hot ea | na shone tm 9 nly! a Lan ee 
~~ mir ni: hi hr S| i af \e ve 
, Hass erie See 
ee 4 Dalasi 
ec MecoARiu Ve + @ ee es % 
oe ¢ : rae | j 4 
I ab aks ile ww a @ t | 
| 7 lay! i A 
Ag. ea (eee * , = anf 
BEN 7 ale le wary 
iin i } ne ay in 7 
un 3! ! er eo) Oe a J f , +e @ Ay? 
A Fy Pils ils Be 1 ee ye ee 
. & &, i ry et a 
are ee Pe 


PAE, eC mee et 17 # isn 1 Rene 
ey ; yi ’ Eade oe x a , 





PROBLEM NO. 128. lol 
(N.Y. C.P.A. Examination) 


From the following trial balance of Johnson & Thompson, In- 
corporated, as of June 30, 1910, the end of their fiscal year, 
prepare a manufacturing and profit and loss account and financial 
statement: 


rt OMe CRSA. dare fd erates a Gal® eu ue Che ' 75.00 
Get Cl COE, marred: hes od a mee Ge oan ce : 3,750.00 
Inventory July 1, 1909 
HOW MAPCOYL Al -sceawer tea beeede eee eee 33,480.00 
PANRENGG BOOOS peas cca ska ws Seles 008 eos ee 9,760.00 
SOLGAV Seas eas Bre re he OPES 5 eon se aie $540,000.00 
Return WOLCA CRU Me HN Peeks ks sss 8,465.00 
Freight and express Outward, ccsssscecsee 935.00 
PUY ORABCS ais ye ook 5s ek weed Mawes & « ieede 195,670.00 
BGOCOUNTS DAVEO1LOy uss ees ee eee SO ees b eee se 37,600.00 
Bile SAVE. 6 as acces Foes eee been ee ‘ 8,500.00 
AGGCUNTS YSCOLVabl Se, sic eece ee saesecaas va 45,920.00 
Bieae TOGOL TARAS iia de ee ai ve euan css press 1,925.00 
WASGH bce vases cect e sess eer ee cea vous we £0e,927.00 
PUGL seek ssavess Paley Mee Sig sie hs 6a our eee ® 11,2¢70,00 
PROG Y BUDA BS, oi cess anak eees eee dae . 5,648.00 
CAR Os SCOuny. OFF PuUYENGSOs sos n essences ye 4,763.00 
Freight anc express inward, .ereevesserss 7,433.00 
TATE eee hea pede ¥en Pr rae ee ee ee 277,000.00 
BOLIC INGER pee yas ers eb ease ea r's erreee s 18,000.00 


MOCEUANONy BNC COGLG ees d ace eeadseensvcues 80,000.00 
Maintenance and replacement of machinery 

EGA TOG1G sedis ee eeesacvcey $10,580.00 
Less amount received from old 


machinery and tools,...... 6,750.00 3,830.00 
Mortgages pavable, 6% interest paid to 

MING Ve LOLO fee vice tie 6a0 6 Ou Ra wes © oe 17,000.00 
Reserve for bad and doubtful accounts, +. By 200.00 
Suspense account 

Worthless accounts receivable,.....s..« 679.00 
Patent rights - disbursements, enceoseees 520.00 
Depreciation - buildings, 

machinery and tools,e.s.e-. 4,900.00 

AOVOPTISING as aceee veer ecbaerreeeeerusene 670.00 
WPAVGLING GXPCNSES, ccsvercverevescasene ‘ 3,700.00 
Office CXPCNSES ee resersreerecrereeccers 5,500.00 
TTC Aa) airs hake Bo) ba a oe eee 2 ‘ 12,300.00 
IR WII, oak we 484 6 oe oe A ee ry 12,500.00 
TYCOL SST piace te ee aw ee eee peas. «)6 oe eee 700.00 
DESO cr MA LER he ee wea wee bee ee ee ; ad a 
CO tt ee Os hye cacs se «ik Rees os 4 ole enone $100,000.00 
BU PIUS ra weber se tus ese eg nee ee ehs st oetneea 8,9'72.00 





$723,015.00 $723,015.00 






he 
lp 
= 
‘ 
h 
ws 





Ist (SSL .OM MEIGONE 
(sottanimax® .AeIsd Yom) 
«tI ,noeqmon? 8 soendot To gonafad Laint 3 


~usey Laoett itedt to ere ent ,OFeL .0& § 
fatonenit bre Inssooos cseol bas thtowg bre gnrin 


90.aT e 
00,0a~.e - 


00,082, 36 

00.007 ,.¢ 
00.000, 0583 

00,.60),8 

00,da&@ 

00,098 ,6eL 
60,003, TG 
00.002 .3 
00,080,3a3 
06,.8aS¢,L 
00."S8e@,8é8 
00,078, ff 
00.880 ,6 
00,2a7,> . 
i 00,é¢3,7 
60.000, 78 
00,000, 3f 
00.000 ,08 


00 .088,2 . 


90.000, TL 
00,088, 5 
00,e%3 
00.088 
90.008,2 


00,09 
00.008, 2 
00,008,2 
90,008, Sf 
00,006, 81 
00.00T 
00.087, 
00.000, 0028 - 


00. ST@ 8 


Aon 00310 ,e8v% 00+2L0,590% 


ny ba : 
ra 
ie i 
deh iq 
2 


1) 
St vate, 
ial 
twee 









tt) 


eeeerdsseneeeee ner ees ee SSee 


ye Peres ee ot fesd 
3 eoek .f ¥ yrodtneval 
ie wecesccsbueéesceeghenaenaae Wem 
rede aeacedoptens0s0s5at———Ta=es. 
we ewegeenessceseces€¢6(00000 Osu Ks OPCam 


De sao 6 deelh a ae a mimsteH 


ewcvcvcesssgbtawiue esetqxe brs fort | 


Ath ak ence bee beens seen es a aeeeee omg 
Ji bwudavecconceecesesseqeLaoved etnyoooA 
«igs ges ewecces sons eee geeureae eff{td 
«gD OU oWikee hese pe ggMeGMeaeees etmuoooA 
sb cwh dbs 6b ss 000 6ee00eg@SCRU OOO Benen 
ad daas leadsesleeee pasts ts sae eee een 
oe sue dhac so tWeesees) eb eav ceeevennee 

bed sulesdcedaesevatebegmernaare yrotosT 
coud aeeenss og QOGRNPIRG NG tavooeth desd 
ceaecvevevvesgdtewnl esetaxs One sig teva 


re ye ee hh te addled ss eles 


+, 5a 
ee ee eg cauha ancien 


tontdoamn to snemooalqet ns eonent 
08% ,OL8 poeveesecceeseesgeLoos bre 
blo mott Bbevisoet trvons eeal 






seneecseresecees sacs gBlOOd baa vientdoaM 


GO. 3 (eses bg Rseos Bria yroninosm 
fo GI “teatotat Re pee os oe 


BG 
rer? Te eee ee ee | ger : TSM 
»+ 2tavosos Lutéduob bas bad tot evteeed 
 dovooss sameqeua 
weeveess CLdBvisoet etmvooos 889105 
seeeveweas g eoromoe tude lb - a it gnod sd 


,eacrkbitud « mo satoonrqed 


coveegtloos bas yrentiio sit 

sc odacess Hace ebaeeed eeaboenqumeect tone 
ee bdeeevakuee cewhesumeeeeane eS 
ew ececaeeseseserenese seg Soemogxe sort? 
 cuucidga Vhs eens eeaaae to eotualae 
scp Waeuwen sep eden cea SeUMMNne 4+ @iQGOe te : 
ECO i y 


anda lakebkie auans sae? mo grvooely 
A {0 : vs 
rie fee ee ee Be sote {a f : 


cv ees enh onde sernceyemene ses os 0868 
vis AD he ro 





i) 
: 
- 
i 

fe 


ie Al 
Ly 





Inventory June 30, 1910: 


FOO MACEPL als aco eee eat EAN TEA ® YPiver tees 87,698.00 
PAPtLy TANiGhed COs yeas ctaatcescesintad 11,590.00 
Py ae Oe mee a ma eh ae Ur oe ae hs ie Se a a 1, ROOT 00 


The reserve for bad and doubtful accounts must equal 2% of 
the accounts receivable. 


Although machinery and tools are maintained and replaced, 5% 
depreciation must be allowed on them as well as 5% depreciation 
on buildings, 

Ref. 3004. 


164 





- p0.808.8 eee * 


ds ne oo ae 00. Oed ff denee 











ve beoalqert bers , Sonkesn teen 
noitetoetced Re Ba flow | 








ee eh 















A “hi ‘6 ‘oghh rey att oe : 
; 2th | b be | 
ak ; 7 » a " i Bape 
,; oo er e tes: if Satay 
| : oh 4s ba heh “ea a) 
relia J oat 
i ee has ke 
42 Se 6 i 5 a 
ad ‘te Mt) Nina th we 1 
“it ‘i | 
pr heim ae ‘np iy me 
3 ‘ ied corns | ; 
Sater? ie 
ia a 
. 
,* 
pee 
7 





G4 


PROBLEM NO. 129. 13 
(N.Y. C.P.A, Examination) 


An examination of the books, records and accounts of the 
Pinta and Mercedes Mining Co., for the month of June, 1911, 
discloses: 


Materials and supplies consumed $9,500; wages: miners 
$1,530, surfaces and warehousemen $475; stablemen and drivers 
$175; general labor $45; administration expenses $4,250; taxes 
$150.40; balance of wages unpaid $135; royalties paid on leased 
lands not operated $125; feed consumed and sundry satable expenses 
$3350; spent out of funded reserve for injuries $500. 


Mining operations: ore mined 1020 tons; brought to the 
surface and warehoused 960 tons; sent to the assay office 1,115 
tons; charged by assay office for analysis and assay $10 per ton; 
cost of transvortation to assay office 80 cents per ton; shipped 
from assay office to Mexican Smelters Co. 1,295 tons; sale price 
$40 per ton; cost of shipment 45 cents per ton;; charged by 
smelters for difference in assay S200. Ore inventories May 31, 
1911: in assay office, 180 tons; $396: in mine galleries, 250 
tons, $375; in warehouses, 500 tons, $1,000. 


Reserves: for leveling of land $50; for depreciation of 
machinery $300; for exhaustion of mines 10 cents per ton. Repairs 
to machinery amount to $50 and ere included in administration 
expenses. 


Discarded during the period seven narrow gauge wegons, cost 
altogether $350, aggregate residual value $20. 


Prepare a statement of income and profit and los fe) 
month of June, 1911, snowing the ton status and the locat 
of the ore inventories on June 30, and the labor and tran 
tation cost per ton of ore sufaced and warenoused, sent t 
assay office and shipped. 


Ref. 35=€2. 
164 









ost eet ~OU itatgoRt phe 
| (nobsantnexd wheed’ ¥ a 


OM ther on 
ei? to 5 ues oe brea chrooet .ostood ‘ert 4 z 
eflOL ,enut To siiaom ong tot 009 site 


events :ce ye" 008, weed soniqae 8 
ttuviu® Ave asnelcdate ;eVee momessodeaaw bas 
conat :O88,5¢ commouxe aekdentetatmbs ang wosat fs 

beeasel io btaq estiLevot (G&L bieaqay eogew | 


eonrroqxe ofdste veieve Bae Bemesenos host :aSie bets ao OP Oese 
-OO8% esolwtnt ao} evreset sebaut ‘to res gg oA 
ott of dciguotd § penod O80L bert e170 senottetsco antaim 
Sil, [ eottto yaace edt of thee :ano¢ OAC beavorlotaw Sans eoatuwve 
;nod tee OL yseee bra etevyfane tot ostito yeses yd pthc tenot 
beqntde z;eot sq ataso O8 soltto yaees oF noltastocensts To seco 


soitq ofse 72 artot 8eS .f .09 evedion2 meolxeM of eoltto yaees mot? 

vd Seatsdtp tymed¢ teq effneo @3 soomqtce to teoo not teq O8¢ 

,f& yell estro¢meval e1d .« yseea at sonretettib “ot ered Lane | 

OéS ,aciteifss sim al s60Gy jenodt OBL «eoltto Yaeaes ak Fier q 
2000,.£ enot O03 ,eoevotorvsw at ;aVEO .eaot 


to mottatootqeb tot 7083 Saet to antlevel <0? reewweren 
nt taco% rot toa atase Of sant to motteuadxe tot ; } 
cottattetatabs z ci bebufont sas bas. 082 og trsroiia eténtdoan ot | 
| + BSBNAGEO : 


zt 


200 ,emogaw egues wortedmeves- botieg ont sjeubbieits dobtapate 





offs 


9083. onlay Laubtaot otegerage 083 q 

end tol ceol bas ¢ttorg das emoomt to snemetate es 6 eet 
sotjacof ad? ban ampete not edt acrtwore ,ff@L ,enet to dtrom ; 
@TOCENsts ‘vin rodel entt Bete .0% svt mo eolttotrevnt sto nae to bo 
2 ot tree ,beevoristeay baa Beostrs eto to moe 18q 


bot 





PROBLEM NO. 130. 1234 
(N.Y. C.P.A. Examination) 


A land development company, capitalized at $425,000 on 
January 1, 1911, owns a large parcel of land in Westchester 
county. $400, 000 of the capital stock has been issued for the 
land which has been divided into one thousand (1,000) lots of 
equal dimensions. The organization consists of an administrative 
office located in New York City and an agency office located in 
White Plains. At the head of the White Plains office there is 
a manager who receives a compensation of 5 per cent of the gross 
sales. The terms of his contract compel him to keep a set of 
books in which the entries are made from menoranda submitted 
by the New York office, and debar him from selling any lot at a 
price less than the book value at which it stands. Ail expenses 
are to be borne by the New York office. 


In connection with accounting, the company's policy is to 
Capitalize yearly, at December 31, by prorating over the lots 
unsold: (a) the interest, at 4 per cent, on the book value of 
the lots unsold at January 1 of the prior year, (b) the operate 

“ing losses, if any, of the period just closed. It is understood, 
however, that if the operating results of any period are adequate 
for the purpose, they will be applied to offset the capitalization 
of losses of former years. 


The casn book kept at the New York office shows for the two 
years ended December 31, 1912: 


kt, ts Pe eis aera 

x ah ae 31/12 Lesvos. (des a3 8 
Capital stocil2/B0 6 ace Office expense, _ 
Sales(60 lots) 15° 206 » New York,....-% 1,455.06 $ 1,656.00 
Sales(160 lots) $54,425 Office expense, 
Interest on pur- White Plains,. 2,647.82 2,530.50 

‘chase money Salaries of 

mortgage,.... 3900 £,000 selling agents 8,500.00 9,000.00 
Deposits to se- Compensation- 

oure sales,.. 2i5 White Plains 

MAMIE MSY, 6 eee es 870.00 


Adyvce.to man, 
White Plains 
4 OPTI OCs <4 ya 1,500.00 


¥ 
$22 ,300G56 , 640 $13,452.62 $14,680.50 


The general ledger, which has not been closed for the two 
years of the company's life, shows at December 31,1912: purchase 
money mortgage, $58,000; investment in land, $400,000. The sale 
price of the lots nas been obtained from memoranda established by 
the president of the company and now in possession of the officers 
of the company, as well as of the iwhite Plains manager, 

# Sold for $29,000. 


Ref. 34-2. 
164 






| at Basil 
iy .08f .OM MUIGOME = 
{ nortackmaxt Act * 3 +¥.M) : 


to COO, aSh$ te Sosifatiqas .ymsqmoo tmemgofeveb Susf A 

-  wotgerfotag at Saef to L9otag enrel a enmwo ,ffef ,f Travel 
ate tot beveet anood zal woote Istiqss ont to 000,008 e TIMWOS 
%o ntof (000,f) Sasesvodt emo otal hebivih need asd -dotdw Sasl 
ovisedtaluimba ms to eftaltenoo aotstasiasgto ont .amotememih faupe 
ni betsool solttc yoress me bas yrto watoY wo mt betsool eo ftito 
et eredd¢ eotito antalt edidW edd to baer end tA santelI od triv 
geotn oft to fes0 t9q © to notdserequos # eeviooot ow t6p_emen & : 
Ao Goe @ qeex o¢ att Leqmoo toatinoo ef to enret ef? .cofse q 
a 

a 






Hodiindise souetorem worl sism ats pelttae od¢ dotdw at evood 
a ta gol vrs gatifee mott mid waded ons ~eotito MxoY wet edd vd. 





eeenagxe [fA .ebaste of Hote: ge omlev wood ot nadt eeel sotig a 
,eoftto ~a0Y wet edt yd eatod ed of ofm 
o¢ et yotfoq e'ynaqmoo ent ,gmitavooos dttw nottosanos al a 
eteft oft ‘rove antdstomg yd ,f6 toomosed ta ,yfusey osiistiqsd : 
80 oufev Mood ont mo .oneo ted 3 ts ,teervetnt eds (2) +bLloerus j 
etaneqco oft (d) .taey toltg ong to £ ytaneeat ts Siloerne, etol any « 
pooterabw sk tI .beeolo temt botxeq oft to ,yas Tt ,eseeol anit q 
edsupehs ois Botusq yrs To etivest aniterego old Tf tedt ,Teveword 
stoptasifesiqas oft teatio of betiqgs of {fiw yors , seca end sot p 
-ateey texto'l to eseazol to 
ows oft sot ewore sottto wxoY wot ent ta dqeY atood oeso oT — x 
:Sf@L ,LE socmeosd bobme etecy . 
sii a brits yas \ . etgiooon - 
E\GE\St£ ILL\féN\Se er\re\Sr £F\fe\8 <! 
" eamegxs eott?tO 008% B\SL ose {stiqsd F 
00.020.£ 4 00.868, f @...+»—¢Hto¥ won « 000,CL #(etol Od)eofs2 . 
. yg garteqxe eoLTIO 88h, d39 {etoL OdL)eolse i 
62,053,3 93.0B0,8 .,antel(t esidw = -wq mo teetetaL 
to eebtseise youom seats | 
00.000,¢ 00.008,8 sfmoge aniifes 000,8 O0t ge oo  OQSQI TON 
#tottseneqmod age ot etleoged 
entealt etidw ais «+, colee ONG 
00,078 noes e e T9QSRSM re 
.1em oF .89VDA 
eatslt otf 
09,00¢,f | (eee eee eg POETIO | | 
02.085, 512 Sd.S858, 619 | ona, 082008 33" 


owt Sit tot heeols meed tom est dobdw .t3ghet fatenes oT 
eesnotmg :Sf0L,fé sodmeosd Fs eworte ,9tft elymsaqmoo srs to e159T 
afar eit ,000,00) ,bnal at tromieevat ;000,869 ,9asac1om Lae 


eae ~ 






eYogenan entall etic) end to es Siamese syascmnos ent to 
-000, | &¢ tot Lo 


125 


You have becn rstaincd to close the books as of December 31,1912, 
and to submit financial statements. 


Prepare: 

(a2) The balance sheet at close of business December 31,1912 

(ob) The general ledger accounts for the two years ending 
December 31, 1912, whether closed or remaining open. 


Ref ° 3402 e 








‘ eal | 
3 ees Bs) — “ee 
Be | f 


‘ . 
e 
7h, 


ond 

trod 

pies Pat es 

, sao etsoy oO” eee 
petetaci ot TO Hibes 


‘sodnosod t tor ‘ost ‘— 
Koch 


a 


PROBLEM NO. 131. 126 
(N.Y. C.PsA. Examination) 


On June 30, 1915, X and Y, partners,operating a manufactur- 
ing plant, incor porated under the laws of the State of New York 
as the X anc Y manufacturing Company with an authorized capital 
of $500,000. The corporation purchased all of the assets and 
assumed all of the liabilities of the partnership as sét forth 
in a balance sheet dated June 30, 1913, giving as consideration 
its entire issue of capital stock, which stock was all taken by 
Bn Ys 


BALANCE SHEET, JUNE 30, 1913 
ASSETS 


Plant ana MEACHINEDY ,seeacdsoetwescosweosseebee memes $175,000.00 
Material Gn hand, per inventory, «<i en Gis eee ews 102,625.00 


ACCOUNTALTECELVADLS sce ieee Woe we sev wnweetannommanné 115,750.00 
Notes receivable, ses: ee2eve? oeonmneaeeeeseemeoneoeaweaea escenree#ee 7,500.00 
Cash, @eweeeeo03x2neceeetoeee ecoweneewvwe#wee eoesreeveegsrieeerteasewsteee# @ ee oe 125.00 
Oar a x bee ed as 8 lbw «009 ( nieaked $431,000.00 

———————————— 

LIABILITIES 

Fo eGR ATE LS ew sites «Gey ps wae 0's Ne Ie PE eee ee ae $240,000.00 
nid — capital,...- eveetrteteoeveevrereereere eoeaererhpanerorvp, ee eevewmevreoe 160,000.00 
Accounts payable, eecas. Deine ists wkd ks ey 6 ee ee ° 26,250.00 
Notes payable, eccsecoeee A ee BO ere ae ° 35 D00.00 
WAZGS Gue ONG WUNPhid yea ec cscs ave cscece SPP nike 1,250.00 
Te ey no 6’ oS eletble ae -+- $431,000.00 


The change in organization was not reflectec on the books at 
the time of incorporation, but at the close of the first fiseal 
year (June 30, 1914) of the corporation's existence the condition 
of the book was shown by the following trial balance. 


: TRIAL BALANCE, JUNE 30, 1914 
Ps, SOOL OGG 40's Pisin se yin os 8 5 oe ee 8 oe eeeesw eeoeoevxuxrseoveen $240,000.00 


OL OE Lg wc e ae Mist oe ea hen sae a's er ek ee eee ‘ 160,000.00 
Piant end machinery io. <2... denne a $187, 500.00 
Material,per inventory,June 50,1913,. 102 .625.00 
DRLORee dre ted nees wee ee eee ee ne 657,025.00 
POSS ok bones eh Oe eR ee Wie os tao ese 240,000.00 
TROGY eas 0 die swe s 0's wae Wiig eta ine ie "ala cae 172,500.00 
OCPSCG GRLAVIGS . + 2 ws eee re i a a asks ose 55,000.00 
Traveling es Neer are Wiw.d 6a wip ee 12,000.00 
Rhee) Uso: i es eo es P 3,000.90 
Stationery and printing, . eae ee! 9 wee ° 875.00 





ast 


etidoaturan 2 gaiteteqo, ersatieq .f bas X% yclel .0& 


vtey well to 


7h eve. oe ee ele ; ; 
! . ae, SU, ~ ey bis svi a 0s 7m aie ia 2 | 
. . ; ; fi . 





f8L .OM MEISORT | 
froitentasxt .AsTe9 MEMES 


| ent 0 
stage ect to ewal eds tebos negartogqroont ,dnelq ant 


fsticgns Sestiodtus na citw ynsgmod aniwiostunam ¥ Sas X eg ef 


faa etoaes ort to fis he gadotud coftetogioo edt. 


«000 0087 to 


dt<ro% foe a8. qidetendtsg ett to eettifitdstl eft to [fs Dempece 


‘gpotrevebtanod 


ag gitvig ,cfef ,0& ert betsd tesde eonsisd 8 mi 


yd cofet {fe asw Hoove dotdw ~foote Latiqso to sseet eatdae ett 


00.008, % 


00.2g3£,.S& 


00.000 ,OaSe 


00,000, 081 
00,088,288 
00.008, 
00.0¢S,f 


90.000, L294 


+s aexood ond 
fnoett teri? ont 
aotetanoo eit eonetetxe e' nokgetogtos art to (Sf£2L 0S enul) 1897 
,sonaisd 


-¥ Sas X 
erer ,0f BMUG ,TESHS SOMATA 7 


eTaIacAa c 
- cawn Lnmaldee sees se 5 64ueq@aeeeuom bas tuseld 
ec eecce ses se ue senate tOn movie seq ,baed no Isbistalu 
oe vee peeelabiby estas sda mgmenatanaes etruroooé 
eves Sldavisost 2et0H 
errerre verter 


“nh © ee 7 SF 


cow ee ees ea eereveeeerers™ 


eeveepeevreveveoer © 
ope dthent cb enksepeeen 


PXTPIITAATI | 
“ee @ewae ere we (Rake bee aeee - x 
eee oa g Sik ada sme emg eae Orgs ana - » 4 
pe cenwsvcvcersseess et wep OLOSYeg BtmsoooA 
Salle ued oe ¥ he hes ee See ere easel 
encavvesgDiagm Sas ev eogeW 


on eo 8 8 


sevepeeeeeeeee* 


on un ee gear 


'y 
e*«soeoee nr? e & * aeeretowe 


ao Setoeftat tom esw notdesinagio al © neo oT 
to seolo ert te dud wtottesogioont to ents scdit 


fates ankwollot edt yd caode eaw Nood oft to 


ood ieeivs erent) apaeeenwnn ae - L 4 


50.002 OER Liccesccseseee esse teonidoam bas gaslt 
600.885, SOL » eoLel Ot ornet ,.vrotmeval you, fsitetsil 


‘cp etvemsaaevseseceweseeyees seg SOlSe 


90,000,033" ren dude ses okbeecneseeeenes  SOCMMDIUS 
60,006, SVL seen ne oe mlacd ae bist tee ne o9> i <0 aan 


00, 000,.dé. « ubaedle veenw deumen 62S R0 SCL370 
00,000,.S1L cg uclecb ec d0 6004/0 seg M@allogne anilevet? 
00,000,é ocea pees e ess Wee? SESS eortesdal 
00.28 | views unc seeqeeeeen Das yrenoltas2 


‘gel 





er AP CUED yas + + cana ae bee lie Pana, OOO .00 
Discount and allowances, ecccercesee 11,250.00 
PUG lata «i a" ahve 6 tug abe Al gta te Nake traps 25,000.00 
eT ee tiem .e.4 sa Spee anette. Wena ni atease 875.00 
POOLAIs SNWATKs 22 cee ss ee Sea By 700,00 
Per LEB LON, sass «2 + ste mpee ois pais ye 31,875.00 
BOMOVEISINE , so ees eis 0 ey ere 2,000.00 
NCES POCO VADLO: os mudd nee Bie te woe 8 30,575.00 
Motes PLYADLE, sss se seeeeererese a », $ 5,500.00 
me hee CCCI OL aon ales 0.8 ond 0.8 * 6 180,876.00 
BOOOUILS DEVEL LOW, we ee.6.5.4 6015 whine e 4.9 99,250.00 
Recah aiaine.s ¢ piste te eh tase vee Nea 86 “ 3'7,875,00 


$ 1 101,775.00 $ 1,101,775,00 


Depreciation on plant and machinery, 5%; unexpired insurance, 
an bed debts, $1,625; inventory of material on hand, June 30, 
ty $98,025. 


Make such entries as would convert the partnership books 
‘into those of the corporation, and prepare a statement of income 
and Soea anc lose Lor the yeer July 1, 1915, to June,,30,,1914, 
and a balance sheet of June 30, 1914. 


Ref. 58~1. 





bitin ete 


Oe 3 














a 
00,.000,65 r I ely 
00,878 ES 3 5 | 
90, 03.8 i mien 408 Re 
60.av8.f ares as eae 
00.002. ee eee 
00, 873,09 Ze cee eR ROE 
60.006.¢ % % j ocak oneeet ttt GGtmeam 
) ; 90,872 , O8L PET he han 
00,028, 2% } : We: LA va'é omen 
» aoe ae DORSET eae Sh wee ve VRE ade ad be 
ti 90.887, 10L,£.2 O 00.3Tv  £0L Lt a 7 Fe ee te ae 
; eee 1 iy: se / 
esnetvent potiqnenv Re erento ast errs. =i no gotisroetced_ , 
08 erat <frie ani mo Lpbred set 9 bd so aninis «BSOqLe eBtced . | 
380,809 iL 
avood qisdetentted ait Sxoevaos bien ee eobtine dove oval - - 
estoont ZO gremogage 8 aa ea a ftO eS + Xo hey et A 
ney ond tO anes a 
re apcaie * a ; 


~biel 08 eat ov giGL af THM 
' | bLee 0G si Leena 


bot 
’ } ! 7 a) 
~y 
‘ i] . - 4 / 
ait : ' ve ips 
> i ® ; ia. 
. : ° . * 
— a _ be au 
¥ -_ y + . e 
ri) 


f + 2 a Ph 7, . 4 om : tt . head ; — a ’ : 
TRE ee Bin oc Caen Wey 
wih Lh 71 ie 





PROBLEM NO. 132. 128 
(N.Y. C.P.A. Examination) 


The following is a trial balance of the Coal Mining and 
Development Company as of December 31,1908: 


TRIAL BALANCE - DEC. 31, 1906 


GOS eG eee e CE es Sew aka i ee Gh age eae 
Breaker anc’ machinery. gov «<0 r dees co ees 145,000.00 
Ure soe Cul LOL NG, aves Ce eee eee hs be hoe ate 5,000.00 
Plackemith shop ecssaeveur eee « slates Fa kee ; 4,000.00 
ENSIiGE: Construction pics os PRewaale Wes od 15,675.00 
Car ana Wine TALT GCGOUNT, ei wt ewes as ‘ 7,554.50 
HOrses and moles, 6s cek ober ee paw R KRG i 5,600.00 
ROCOUNTS TECCLVSOLS eee weee Manan tances ce ole Lie Ow 
Bills receivablé,...... Sin bs See eee 10,000.00 
Panthelnatock ercommonssit.seeakeod. vel $ 50,000.00 
Captiat stacki-— prelerredys seein sc ccses 100,000.00 
OORT SOLeSlo6 nr h4 6 tees Ca oe ee ne 257,890.00 
BORGUOR LORS OLS se 5 6 kes ond os eee PEERS 12,500.00 
BUBDTMSEG TER ws ei Ks ee eee cee Set ae RO 17, 709068. 
Depreciation on buildings and 

MRE ROMY fae. Ware ORE Ks a aes - Verowee 12,000.00 
SUPPL LCas. Ge eurdee. Sev. oa Trg we OES ree 8,240.00 
BEV ePGEEre CULSIGS sg 6 0 ds sic cease wa Ke pe ‘3 24,701.50 
PAVE COAL OLGA, cece sv scence cena ee o6li®, 434926 
PREP EGS -WhOUNT PEE CC ese cc ke weve ws Bead rh 6,000.00 
POceeeeGerenOr Tice clerics .sces nee See HY 4,500.00 
Office -expenseyé....+. sade Vek a ee CES 1,247 635 
GOnNeradl GXHSMSC Gea. re deceicwan pains wa a Oh 750.00 
OPaemO TON DHIMPIECS, escrasuves anus 4,000.00 


Insurance (expires July 1, 1909),...... 5,500.00 





PApSergotd vOuLGGOLOeS , occ te va ena s POLO 4,075.00 
RSDSAMS PYG pc ONS tCPUction, ... see ws wh dcdd ‘ 5,445.00 
PGSM GIOSNGE 2 6s eg Fillies ee ew es eve CRBae 1,500.00 
Be SO eek Pe a ae ¢ MOVE 4,500.00 
HOV Cyr COUR Pe daiidid i. oe wenden bn VeOs 350,500.00 
WAGOKR, ws Hex els WRG oe dale 9s Ck es earned ae 800.00 
PPO EGRET. oe MALONE Ds nu olds eo wwe hseeie’ 935.00 
DINGS [ANG (Prong ya ed Mawes oes Pee ee 5,475.00 








$450,009.55 $450,099.35 __ 


rt ee 





os 





‘ 


. The total output for the year was 152,300 tons. 

An examination of the books and records show that the follow- 

ing charges had not been centered: horses and mules $2,200,car and 

mine rail account $1,450, claims for injuries $1,000. During the 

year the bookkeeper through error cherged to Inside Construction 
$3,415 instead of to Pay Roll Inside. 


164 


agi 





SEL .OW MEIGORT | 
(aoitsctmext .Asd.9 .¥.M) © 


ea 


ante & : 
7 ® 
hod ™ is 


Sees gir beettt fso0d orfi to eonslad [sits & et getwolLlo? edt 


00,000.08 
00.000, 00! 
00,008,728 


Se Ss | ' 


‘B00L, 15 sedmesed to as ymaqmed dnemge feved 
30ef .f& ,O8@ = Houagad JATHY | 


2.5.2 ¢ anlé alee Kon s's Oh dpa son secre saneeS 


00,000, af ceeeeesrenseeee eee CAO Sem Oete yovise td 
00,000,3 ais Vnleachc cee pb eae bb ee ene gofTto 


00.000, 2 dade veces cs eee ue heels CREE EROAEE 


60.2eVa,2 cheseecvecercesesceghOssONeeenod STent - 
08. D520, ett whew es sore eg dtooos et eniin han aap 
60,.005,¢ CURE Kewivascnvacendd seaeeeelaen Drea. 20e8%0H 


oS .8£1,8¢ iS easwercesenevess eqg@OlLOSVieoey GIMOSTA 
00,.000,0£ is URC a de ced eteee Oe eA OLORULOCn Gao 


La beeeescesoceese gtommos = Asote Latiqad . 
«hea ee owes e ee DOTROTENG w NOOFS Lely aao’ 


a Wei Am Ade Aiki gy gus ereerar se eee 

ey ee er eee +. Sldsvag egavoooA 

© Wideaekiinus © Walle, teselit Abeie ws ioilb’ 4/8 40 Gey 

bes egnthiind mo aotiekoeuged 

j Perry Tee ee LT eRe eS 

00.055 8 er re ery Ne ee re, 
08.f07 a8 opeeteenbesccoccseceusQgonseoue = [LOT yar 
GBQwBSH OLL  swececwecusvssvececwe G@useta @ CLOn Ges 


CO.000,8  § beawedscestegacengeQu® evuvarm 802 78.85 
00.008 ,.2 erasvewebdeveteg@utsld Golite = settaiade 
GCs TOEs eee cere aa seventeen es see ageenegne en trt0 
06.087 cbabeeveceeterebone eed s pOMeOusne LAe amerew 
O00 ,O0Gas. 3" aa dum ceeccseccseeghOLMULak SOT emkaio 
60.908, wovceeg(QOCL .f viul estiqxe) sonaiseal 
00,790,8 VO @ie oe we evs bes ed pale 66g CONS ODEN Oe etisqon 
00,352,6 cesersesnwcnces gMottourasencs of etisgen 
00,008. £ . | sveevesccnsunesunsecades ae G@GHORE Seuam 


00,.008,.4 ve wales ee wee © elk a oie 0 eg ORTON RR eee 


00.008 ,0& ee Terre er yrisyod 
00.008 ee er er rem we re me ee 
00.82 jig LAS. kerma he oe eto i ns Bie aoa ee 


00, dV. ¢ Tor rrere Te Tene et le Orts sodmiT 


ewolfot out tect wode ebiooes bra afoot oft To motianimaxe mA 
Bas t89,00%,.9% cesium bas nestor sbetedno meed tom Sst 20 

ent aniuacd .000,[3 estustat tol emtslo .083,.f tnyooos ne 
notterrtnnod shtenTl ot bearsds torte dyvowit teqeeddood oid T89 


,eStent ifLon ved 
bas | 








Lo 


The coal is mined on hich averages sO cents per ton. 
ace inventory is as foll arin and props $1,500, powder 

$555, oil etc. $175. In preparing the above sta ‘tenents, allow- 
ance for depreciation on buildings and machinery may be con- 
sidered at the rate of 5%. 


Prepare income and profit and loss account and balance sheet, 
as at the above date, shov ring gross earnings and net earnings, 


also the average cost per ton. 


ia Pe 
a5 
ee 


. 44-3, 


PROBLEM NO. 1335 


GPE 908 Rh ae 


From the following, prepare these statements: 


facturing and gross profit, 
and net prorit, 


Gross Sales 

Return sales 

Trade discounts 

Commission for purchases 

Traveling expenses for buying 

Allowances 

Cartage - outward 

Freight - outward 

Raw material 

Freight - inward 

Cartage - inward 

Productive labor 

Storage - raw material 

Unprocuctive labor 

Income from real estate 

Cash discounts gained 

Insurance - tools 

Insurance = merchandise 

Taxes - personal 

Depreciation - patents 

Depreciation - furniture and 
fixtures 

Depreciation - debts 


Ref. 46-1, 


Examination) 


cost of manu- 


cost of selling and administration 
surplus account. 


Power 

Factory expense 

Depreciation = tools 

Depreciation = patterns 

Depreciation - machinery 

Repairs - machinery 

Increase in inventory 

Selling commissions 

Salesmen's salaries 

Salesmen's traveling expenses 

Officers! salaries 

Clerks! salaries 

Telegrams and telephones 

Postage 

Collection and exchange 

Stationery and printing | 

Boncing of office employees 

Directors' fees 

Interest on bonds 

Interest - general 

Upkeep, taxes and interest on . 
real estate 

Surplus former period 

Salaries of watchmen 


no ¢ 
Su, 


sida TST age 
yebwod ‘ 


geo 0S Boget 
“109 od ‘Yan 7 vieaidosn 
~voOna sonsisd bas 


agains 


CSL 


bas s sgakb Lind mo MOf 





eve dotde saat au mantle ef [soo saT 
bas tedukt sswolfot as aN yrotneval sAT 


Pats -«dte {to ,9ae¢ 
letgeh to sons 


+ sit te borebis 


’ 
‘ e nf A 


eve to 


tmooce eaol Bae tttora bas uate Ssteqexi 
tou bee agniinrss ssotg qniroda ,stsb evods edt ta er 


mot 184 taco agaxey® out cele 
Ceara - = 


~OM, WIIEORT 


(notseninaxA .A.7.9 .¥.i) 


1 - * 
“UiTsm IO 


mot 


wh » 
7eog 


tontelaterda bee gitiise to 


Tswot 

Ssensyxes yiotos 

efoot « mottsioetqe’! 
enrottaq « nokistoeuged 


Aa hs ingdonat « aofsekoorgoad 


ytoridoeam =» stleqon 
yiosnewnt nt seasstoal 
enote etamos antkiflie2 
sotisiae pe momest ac 
anifloveyt e _fromBelsé 
eetvatee ‘ evteotti0 
eotisice 'etaelo 
sonolqele? Sree asnatgoleTt 
; eagsteod 
exasiexs Pasa motioeliod 
antining Baas yienortart? 
eooyolqine S9EFZO to gatbaod 
26st 'exotostid 


B9emeGqxe 


2orod mo teetetal . 


fsteneg - Jaotednl 


no tesistat Bas e6xad .cqsevqd~ 


otatee I[rset 
Solisg st9mot euiquvé 
oormdotaw to estenine 


ratcemegste seald esaqetq ,gntwolfot ot mort 
titow seers bce sntaustost 


$209 
.tavogon aviqauve ,¢ttorq ton bar 


eeis2 22070 

; eoise siustos 
 etavoserh ebart 

2oeariortsa tot soteaimnod 
aat¢yc tot eseneqxe gniflevarT 
esonawollh 

Srawtyo « egsdisd 

biswino + tostert 


{sitotem wet © 


Hiswrt « trisisrd 
Brawnk - easdiso 
todsef evistorberd 
‘Lebasd an west «= 236%0t2 
socal evitouSsorant 
oteteg Leet mort smooaT 
bentsg etmuooelh desd 
| eloot « sonsitwent 
ealinadoiem « sonstuent 
cagaspe e: - £OxsT 
atnoteg « aolisiosaqed 
bis stutinivt « nofltaiosiqed 
eotwssxit 
atdeb «= aolistoorged 


pled) , tos 
nas pie’ 


Ze 


a as 


» 4 if 7 
we a upndiw eo ay 


‘ip i 





PROBLEM NO. 134. 130 
(N.Y. C.P.A. Examination) 


The directors of the Red Indian Coal Company have requested the 
the company's aucitor to prepare a profit and loss statement of _ 
the company's operations for the year 1919, such statement to 
show the profits for the year, the amounts due the four salesmen 
and the net income distributable in the form of dividends, with 
a recommencation as to the amount the directors may safely de- 
clare therefrom as a dividend for 1919. You are expected to 
furnish a balance sheet after closing, 


Under arvangement maae by the sales manager, with the approv 
aloof the board of directors, four of the salesmen, Smith, Jones, . 
White and Black, were to receive as compensation, in addition to 
their salaries, the following percentages of the year's earnings, 
measured by the net income: Smith 25%, Jones 12-1/2%, White 
6-1/4% anc Black 6-1/4%. Furnish the financial statements as 
above requested. © . 


TRIAL BALANCE, DECEMBER 31, 1919 


Real estate, sees. p oees,000 Canital ‘etcties «ies. +> $422,000 
Plant and machinery,.. BU OOO Gales. esses o> wan ete 438,350 
Patents and goodwill,. 160,000 Accounts payable,...... 20,000 
Inventory,Jan.1,1919,. 5G,000 Notes payable ves «ss sss 52,000 
PUPCHESES acer seeseesse 165,000 Dividends on stocks 
FROGS ales wie en wee es i vege  R1G,000 WG OC os Gnas as he ee hw one Po 3,000 
COGD ob wee’ aa bcuseae ee a2 UG) RENTALS 5s os matinee oe cas 4,000 
Salaries, general,...«. ec ,000 
Salaries, management,. 10 , 000 
JNSUPATCey sc de estes ee 8 1,750 
ROPOINS (view nee ree eens 2,000 
Claims and allowances, 12,500 
Prepaid freight (in- 

cluded in invoice 


WSC) ans ow ee enone ° 3,000 
Interest and discount, 1,500 
CST eax ce 2 ews a ass owl 16,000 
EAVES EMCNUS 9 t550-5 06 one 31,000 
Miscellaneovs expenses 8,600 


Accounts receivable,.. 84,000 
PetsCiesoan. 1, 1912, . ARG 8 


$939,350 $939,350 


eee 





Inventory December 31, 1919, $°53,000. 
Ref. 49-3, 
164 


wef OW MAIGOAT 


(mottentmox® .A.T.9 mt ye 








eit beteoupet oval yneqmod £80) gathat Sof ol? to atotost£b od? 


seof has Sktota s otseqotd 


80 ¢nometsase 
~efef sav Sr? 


os toomotate rove 
memesfen tuct ent eu etmvoms off 
dtiw ,ebrohivtS to 
#05 yistse Yan 


ot betoeqxs ofs voY ~2LOl tot 


ot sott Ses 
tot enotisisge 
,teoy ont tot esttorw edd wore 
axe? oft oft eldatacdtiterd smoomt tom ent brs 
sxotoatth ett tatvoms oct of 88 motsehmommoooy & 
Ancebivib 8 ea morleteds otelo 


e'ymagnoo ot 
a’yasgqmoo ort 


.paieolo tatis teede eoreisd s detoru? 


worcas oft AtEv 
2000 .itina 
Og mottr5ss as 


athiy RS\l~Sl senol ,ReS Atime 
on etaometeate [atoaant?t ont celaiwe 


arer , Le Aamo 6S 


OOO. SSSS so cicsvss ..woote Istiqsd 900,30 @ 
O@E BEB recses vevvsecees ee ROL8G 000.08 
9006 vessengol@eyaq etnvoooA 000,00L 
O00 , 36 ° eee ue ideyeg 26304 900,8¢ 
elnoge mo ebnestvic 000,e3L 
00.8 ‘ssecsndmen eee g DOIWWO 000, 6TL 
000. 2 ol) Vg ial savccsgelsenmen 000,S!f 
| 000, 8 
900 , OL 
ost .f 
600, 
O02 , Sf 
000, 
008, 5 
900,4£ 
y 000, 1% 
" 0039, 
. 100,28 
ess 600, 8 
O2% tee oat 2702 


,000,e8° 2 ,erer 


) ee BOL 


~rensaem eofae ef? YI Soar ; 
cameotse oft to wot ,etotoet£d to hrsod sit to fis 
.noisrecsqton ea svieset oF Sew 

~eunioiae e'tssv acd To segsineo ted agiwoflfol sat | 
:emoork goa erly Yo Hotvesom | 
RA\L+3 
ary \i 


teomeanets reba 


ost! Sne ot icih 
,cotisise asatorit 


foeld Das RB\1-8 
-botseupet svoda- 


cocrccneneq@eaeee, [807 
.-.yrsnitosm ors taslt 
selitwhoog Snk esnetsi 
cl @l,f.nal, yrotaeval 
ons essen chosen eens 
(cwsedhans shee 
oon a) se bkes pee 
eoee, Lattoneg ,eotisifec 
. ,doromeganam ,esirslsé 


us enecwee 65 gO DRO IUBEL 


scecwwse senses eb tleqon 
.eeomawolis See emts{[d 
«tit) tdatert biacqest 
eotovnt at boehuto 
seeisenemsan eg eeer te 
,imyooeth Sne seovegal 
WeeTerery cr ss 
onereessae g eoptoiis count | 
senroqre evoonatlooe iM 
+. oldavtecet BINVOODA 
oeeiel AS ce., troited 


Oe 
. 


.LE tedmso9ec yrotneval 
.5-Od . tof 





PROBLEM NO. 1355. Lol 
(N.Y. C.P.A. Examination) 


The Clar’: Company publish a magazine which is issued on the 
15th of the month. They contract for the printing and. oe 
and make equal semimonthly oayments to the contractor 


A summary of their transactions from October 15, to December 
o1, 1918, is as follows: payments on printing and binding con- 
tract BOE 000: subscriptions obtained #40, 200 of which $200 7 
represents unearned subscriptions; office expenses 4, 500; ofrite 
salaries $10,000. The office equipment is valued at $5, 000, 
There are unpaid subscriptions amounting to $17,000; cash on 
hand $10,000; wunpudlished manuscripts $4,500; due to authors 
$2,000; accounts payable $4,000. The company have capital stock 
outstanding $25,000 and a surplus on October 15, 1918, of $4,800. 


Prepare a profit and loss statement for the period from 
October 15 to December 31, 1918, and a balance sheet as of 
December 31, 1918. 

Ref. 50-1. 


164 












kEL | acl. boy 5 ot a 


Heri se beneet. ek fotrtx ‘onbead 
, {een 8 Sie Rattaiatq ons tO 
cotositines ent of ednomeag, (i 
|! 2 Ae ‘Fart ie a 
. Medmeset ot cf «<edotoO mot erotsosenst? nt fo 
> ehnoo gatbrid Sar saiiniag mo esaemys 
OOS? tok: tw to 008.086 Aemkaddo pads 000, 
e9irt0 -004,S¢ eoemogxe soltto ,enotitc ttoed a : on ery & 
a ,000, ¢ te hoentov et soemetupe peda oat -000.0t6 oni se. 
ey... to fepo ;000,%L@ of gnidavome anotie een ell ete ews 
‘exonddue ot oud £008 hi i haar ngeete yg 7000, 0f3 Saad 
Yooye {eticra oved yasqriog Sat, “gdroo08 + - 000, 2 
ase gntbrataduo 


P ,008,82 to .8f6r .af tsdot90 mo aiteue’ 8 das OC 

| mort botteq o3 tot jnomodate 2eol ons gPtog & ersqeTt ? 

to es toorfe gonsiad Bs oe i: = xodmeged of 3f nedotsO | 
«BLL ,L8 asdmooed 


Le has UT [+08 ted 





PROBLEM NO. 136, Los 
(N.Y. C.P.A. Examination) 


The treasurer of the TritePnhetenwt Manufacturing Company sub- 
mitted the following figures talzen from the ledger ae ‘tae fas 


gone representing the sordition of the business, De¢ember 
hg ‘ :. 


OG a eae es es is eveceeeely SARA «a. ‘F,500 
Accounts yniekii nhl seen... oe eae 45,000 
NOGCSS TECCLVADLES) espe asererossececcsnsease 1,875 
Inventory: 
Rebn mateo.) 9 umernaue xe cinta sp.» Seda re 
SD fo in aS ves venenatis 30,000 
Manufactured, BOGUS sis wei ee ain .e 0 16,250 66,250 
eons, Daves scien inie ne.s.» begat egipey ss $ 5,875 
NSCES PARVATI aay dstalewle eens elses ere eae ses ° 20 , O00 
Capttal «stock, <x sss. 2\ Perret : 80 , 000 
Surplus, December 35l, eT ahaa Rees tcay eis cis . . 14,750 


$120,685 $120,625 


A comparion of the above statement with a former one showed a 
net loss, for the period, of $6,250. The directors had expected 
a profit, basing their expectations on the result obtained by 
applying their cost calculations to the volume of sales for the 
period, and they employed an accountant to investigate the matter. 
All the Nominal Accounts had been closed into either the Merchan- 
dise Account or the Profit and Loss Account, and an ist tide of 
these accounts disclosed the following: 

Inventory at beginning of period: 
ROTOR OTAR kek eae nen cee eccegee 22,600 
IPOD eee ae Ch4 S445 eee eee neaee 32,500 


Mey POCUsPO? (BGOSF pa ececsnecccnas 505,000 
PPC HASSE UCU Ie Deri ge eh eens 50,000 
beCOG a Wan ha alee Ones & had oe ee oe 87,500 
MAGOG peewee Waa Veena ee 5 es eka eee 10,000 
Traveling expenses, commissions,etec 26,250 
BRLAPA GS oak 'e's « a eae aig » 94-4 en eee P 19,000 
Rent, imventervy «ss enue eer eoeve wr eee se a, fo 
PEGRCOQUCS, wan ce be bois hea a 6 2 8 ee ee 6,575 
PRPC OCTOIOU wena sean 0244 8% Cae ‘ 1,500 
TOEGVCS ST pica ove 0% CWia ots 8 2 an ee 625 
DOUCHGECR pwc weusae iain 3 Wererrrr he 250,000 
RSTUPNEGL SA bCesoeases canes se < © eee 7,500 


The consumption of material and labor shown by the cost records 
was; 
Baterishyiutings,..++> icrireruouueas $.96,.000 
eae ro ee peede 80 , O00 
Prepare a statement showing any discrepancy that may exist in 
the above figures; also a statement of income and profit anc loss, 
and a statement of assets and liabilities December 31,1912. 


nr 
Ref, 51-2, 








SéL | asl OM MEIGORT rep 
{aottentmsxd .Ast.9 eXelr 4 | 


- | 4) aniwtoelsne! Lanottantetal eit to totssone si? 
agin ti ot | ae soghel edd mort mols? soiwy3it gniwoflot edt bettim 


odmesot ,2eontenud of? To ngkditeas oft gatimecotqos feta & 


00e ,F g cov nevvabesng' oe6 606 CERRwEREENTOS + ee ghBeU 


600 .¢ ecncenenseeca bes o0bese rs einrosoa 
eve .f pevseresescoressensergees gOLdaviones 29%0" 
) PYAIQOINSV 


000 OBS i+ 4 +t Cae aa 
OO «' ers 2 Ee SS 
O48 ,60 O88 of wesnssvecesegenoos Semeostrrsi 


avs,3 & 


Ves 


Se eaten 





tevaresrseenccee SLOL LE xedmeoed ,eviquve 


490.0812 680 ,O8f¢ 
BR bowocl2 eno tomiot se atiw tremotete eyoca ect to aoiveqnos A 
betosaxe bat anxotooath oof  .06S,09 To ,Polteqg oct tot ,e2e0L ton 
. yc bentstdo digest an me anottstesgqxs «ted+ gaitesd ,éftetq 8 


ett tot esfae to omulov ont of enotesfuolso teos tkedd gatyiegs 


stotiean oft etentteoovnt od tastnyoosa ns hevolames vert Sas ,Sotieq 
enccots oft tevtic o¢el beeolo mosd Sar etnvoooA Lanimon oft ILA 
"eo otoviscs me Sos .tros0A e#ol Sas FEtoT eclt to garmook Sek 
saniwoffot edt beaofoeth etaveoos second 
:bolaeq to antaninzed ts yiotneval | 

OO SS Bocce newer es vernses se eg cHhROSeM war 


003, 32 0 ach ellulsdie wanda dbs wee wad ae 6 see 

000,c¢ cescwesecsevee pf0D00R SOtusoOSINASH 

000, 0¢ vieepeseces gDOttog gakiub seeniotwd 
606, V8 ss a 0: aw ce MERA Thea ee 6) 6: fea phil er Rak ance 
O00, 0£ ae cea RumeeaTIe dig a isa ecle oleh an eel ee 
688,93 ogo, anoteeimmos ,eeensqxe gnifovsiT 
O00,ef a a on wo Ms ee aan ne die ae 
O3Y.& oo « wh alld guile <4: tleatigl i oat ales ee 
ave.d ee 
00a, jas cue naprieacdizaks vee sgRtOtees oo mame 
ase. . ca whe ga & Abita’ Wl Os eee aee ae a Ae 
‘900,088 » yo a, aha seat bos 5 an eee neeenee 
OORT wees ew ecn ew atecs tens geonme bormuden 


ehtosst teoo art vo ovode todel bas Lelastem to aolis¢muasnos onT 
ae aw 
000,ch re ** so ore talbeehaba hall iil! alates aieiats Abie Cd ane 
O00 O8 swe ne uo ola! esd ete: icdh bile hie Menace a an 
mt jeixe yen FETS vyonscsiselh yas grivode tmemecste #8 stages | 
yeeo!l xf Jitotg baa smoont to Saemedste 8 oels yeotwalt evods att 


Sf0f, 1& rectreged cotsificelt dae eteeaes to dmomotzade 8 Sas | 


8 i) wee 
’ +a- {é * tas 
sdf : anes Ss 





rea “oleh ' : ‘vil oe > * aad —— 7 a 


wh gacsucvcndues desk eGlLany ee Geomceon 
900,08 cukesd tbe cade. SRS 6) ae —patot. 
600,08 5 ob U hice bs u's) 6 algae Rages jailer cnanae fsticed 


on 7 . ; 
. " 
t 








PROBLEM NO, 137. 
(N.Y. C.P.A. Examination) 


133 


The following is a trial balance taken from the books cf the 


Butler Manufacturing Company, December 31, 1905: 


TRIAL BALANCE 


AECCUINES PAVED C ace cmaeae tees sw 0 tes meens tad 5 oie 
Recounts Proce i yables aaseee seep are ci cst he ¢ 625,000 
Bonding of employees (office),....... $384 625 
Capital stocks seven ece pee ge yawns ia wig eat . 
Cartaeer OUCWEPA sees Cae eae ee bebe e sre th ad es 10,750 
Cartage inward, cavs<s<¥s Ph de Bs RR a Re 9,575 
UU INS bie vib. s 6 Mm wate ete Ne woes ese So a ee eo 112,500 
Cash discounts On SaleS,yecseccsvenvescces 7,000 
Cash GisScounts on purchases, ,escesecsres ae 
Collection and. anti tle: paaad © Bie e's 8 She 1, 10 
Directors Cece pies «vee a's Ue Se wales whee a, 7eO 
Employers! liability premiums, .. Terre 10, 000 
PACCOCT CXC CNECS ded eee sateen bp iv secenus 7 ,oco 
PPGseiy OUCWOTO eka secre ine ey esse eee ty 25,000 
De NEC as Wawh 6 Roe ee ies ov eetewe 57,500 
Finished goods inventory, January 1,1905,. 87,500 
Insurance on machinery,tools and patterns 1,200 
BOCOCPOCSTy METS G Lg saws ida oie wee ge nla es Ligure 
DAB ORy (OLOOUOT IVE Saws gs calk os Smee a's bo 0 ses io 750, 000 
TST I TOUUCTA VE iene wees voce ec hanes P 87, 500 
MAGA Sere) SNC, TOGLS pak beh Wale ese nc cov enus 122,250 
BOCES CAVA Sy wae eee wee eb wews a mn ce te weae 
Notes receivableé,.....-. Se eee 7,Gce 
VEL ACG BEY TOLL g das tec seme Pie tees we kae's 45,000 
Office furniture and fixtures, Mla ei cee ets 14,250 
“\POBUCARG. aac cise Sams ee 60 4s Cee ee ce ass + au 5,000 
POWOGT 5 Caisle wae) Salwar es 6 aie : SE (ie a xen 52,500 
PETGEINS pic Heeb acwed esterase oe a8 Hot SSE ae gies @ 31,000 
PRC pie Aa ake ob eis ae 8 0s Waeiieiwie eee soa 52,500 
Per GANG ee ey abet CO wd vp 4 W's 9 C8 6 ora . 1,026,625 
Raw material inventory, January Ly t805,. 100 , O00 
REGU SALGG vs wis aes een ee eee ‘ 102,500 
Repairs, machinery,..a... ee ee Ore as wsere 
SALCS ysedew as iene bale © as Ca al wees 6 ae ere 
Sales allowances, .. ey é alga a 8+ 0 Ree er a Ae 
Salesmen's travelin 1G EXPENSES, .n-eeeceeeee 43,750 
Salesmen's commissions and salaries,..... 100, 000 
Salesmen's expenses,..... et tee eee ke 5,000 
ee ee POOLS, eis cid sss melee ue alee e 37,500 
CAC IONery are OYinting sa secieees es eon wind 7,625 
SUL CLUS peel she ck ee Re Mw ee awe eae er 
Taxes, income and personal,....... « @ Hewes be pow 


¢ 107,500 


500,000 


3,000 


247,625 


2,621,250 


108 , 600 


5s a 


ettt Io exood ons wr nels? Pe eee... 
A005 


000, 2 


08S ,.{S6,3 





O27 ,.Of 
ayve.? 


006, Sif 


000," 


oat 
oar ,.& 
000, Of 
esc.¥ 
0900.28 
008 .va 
O04 , 78 
oes .i 
ove . ff 


000, dey 


008,88 


O28, £Se 


0028 , SB . gees heewas 6 edn CERN OO Sew Rae 6 hee ae 
000, £2 Perererrvrrrree cr Uae eT ee) Py ee || 
062 .S¢ ccenchscdev tied ebeee eet ucepen shen gReneues 
oS0 080, i UUTECTUPET TT Tee ere ee fo ‘ 


000—% OoL 


008, 804 


ws 
estes 
009 ,.00L£ 


000.2 


008 .VE 


aca.y 
02,3 


18 sedmsoed LWeagmod gai , 
AOMAIAG IATAT ae oe 


eb 


etavooss 


& SECU VULEREETESTES TT 4 859% ginvoovA 


oo ennews ce eg (OOLTION Lqms to gakbnod 
cee c ete e rere eee eee eem ens glOOTE {sttqsd 
ee tuo NSD . 
obdinigierd v's « s'e o' oe 6 canes. 
Deen eater eee e nee ee baresseesengses ee ghee 
evlerevevecessvercugQOcee G0 QINHOSELS BHesy 
cacceersccess, 29eaotuy mo efeuooels tes) 
Cieaeewedesedawe 6g ORI Sas rotssellood 
Pe errr ae ' saqoto9Tid 
scccnssecesgamuimeig ytiitdatl *erevyolqnt 
sha vecncesesespensy sqROSROGne® VIOsGnRe 
onens made nee dese ssnees ces geeeaue tig loxt 
ne enheee Cows es vc dae tute een trig tort 
» ,cOCL,.£ yraunel ,wrosnovat eboos boreialt 
encostsg base eloot,.yioridosm so sone RAT 
«CREO ban GLC Lae ie REE ,teetstal 
- wash eesvanaescangeene ee geVireuue tt. soumeE 
cesses sevescseuensceegOvitomsorgay ,todal 
oneeedasasceecess Cees eemeeer ans yYronidosM 
Torre rrrrrsrrrrr rir, Tatas te «| e9sou 
cdo te@ecss ceased @daNee Oe aeeeee estou 
wer re rere rer rrr eras see yar eat tt9 
ip bees eeese sg QOMUIRIT Bas Sustinaiwt eoit?0 


% 4 8.2 


ov ceicabiee tendawews Shy ceemeves Cag@meenoe” 


.,cdeL .fl ytsenst ,ytotnevat [ainetem wah 
yoo cad hd CAdAERIIGk4 ele dale eneD anne mxston 
conuveeducpadeb ies bee pee teaenema eetiasgeh 
coerce chee CeGNCE LOVE OONEO SOS UES 6 be eg RPLED 
orgs cesectsntoscerivesang R@OMewolls gefse 
ceseeccsevege@erogxe gitileverd Bi cromeoLse 
seer gtOitaiag bas enoleetamos Bi ‘nomeelse 


eecsvvicebaveeoadees -gegeregne e*pomeelse 


PIeTerrr: ore Ce ee ,2eturelse 
cee n ees es ames BBE 


"er a6s nad emda, IAeReamgee pas Cag ia 


sen © 


ee ee ees fT 


os 


9gat 
Stewat opatied 


my 


q bre vronofsste. 
















134 


Telegrams and telephones,......-+-2... ee 4,500 
Preaae Ciscoeunts on purchases .e «iw os vous P 12,750 
Trace discounts on salés,.eesers Apr st" ar 3,075 


$3,600,925 $5,600,955 


oe 


a 


On December 31, 1905, the inventories were; 


Raw material, sees es ce Pee $150,000 
PADABHEG. POOUE pag sw yin ors oa. of ois aie 75,000 


Prepare a statement of income and profit and loss, in report 
form, and a statement of assets and liabilities, December 31, 
1905 « 

Ref. Biewd. 


164 


ne ys ay “a 
= rd. 
TLAS ET. 





ae 





COMPARATIVE STATEMENTS. Loo 
PROBLEM NO. 138. 
(Illinois C.F.A. Examination) 


The balance sheets of the Greenleaf Manufacturing Company at 
December 31,1913, anc December 31, 1914, may be summarizec as 
follows:- : 


DES «Ak gu eh atdat pec, Sly. 1oi¢ 


(a Baie He ites ee 
Gonews 1" "ey we ett eet | 200,000.00 
Land anc Buildings . . 450,000 .00 750,000.00 
Machinery P “ ‘ 200,000.00 400,000.00 
TOOLS 6 8, Ne . ‘ 40 , 000 .00 80,000.00 
Unexpired Insurance P 5 ,0G0.0G 4,000.00 
Inventories ; . . P 400,000.00 OTS ,O00%00 
Accounts Receivable 4 L75 ,O0GO0 206 250 , 000,00 
Cash » ; p ‘. : * 25,000, 00 20,000.00 
Investments in Stocks and 
Bonds : ‘ : ‘ 95,000.00 

$3 4588,000.00 2,109,000.00 
Capital Stock . : ; . $§ 800,000.00 § 1,100,000.00 
POmCs- wa. . « : : ‘ ; 350,000.00 500,000.00 - 
Bank anc Other Loans : : 70,000.00 ‘80,000.00 
Accounts Payable j “ ‘ 145,000.00 125,000.00 
Acerued Interest... ‘ 7,000.00 31,000.00 
Atcrued Taxes”. : 4,000.00 6,900.00 
Survlus : cle wou. __ 287,000.00 


$1,585,000.00 $ 2,109,000.00 


During the year a dividend of 4% was declared and paid on the 
stock outstanding at the beginning of the year. $7,000.00 was 
provided for the depreciation of the buildings, $16,000.00 for 
machinery and $4,000.00 for tools. The bonds were sold for par, 
and the stock was sold at 90 and the difference was charged 
to Goodwill Account. 


In the light of the above facts interpret the changes that 
have taken place in the financial position of the company 
between the two dates and, so far as possible, indicate how they 
were effected, | 


164 





$a gasciso gabistostescait iselfnee ont to ats 


BLOf ,f8 .o9d prer £8 oat 


stonent nt gq moust evar 
wed?d ‘or odnstdat ,efdiseoq 2s tA% fod see oben on ows § ineowsod 







eer | - oesumratt EVITARAIMOD 


88 On aa 34 mh 
(sobs anionnad ALD 8 ror 


as jes itemms c od yan Stel a ‘sednene 


is ne 


60,000,088 § 00,000,008 @ 4 









» 00.000 ,027 AO, COG 08S. e 
00.000,005 00.900 ,008 “f 
00,000,068 00.000, ‘os } 
90.000.) ), GOORE y 
00,600,276 00.000, 008 ‘2 

00.000, 029° 00.00, 39S. af 
00,000.08 00.000 ,.22 * a, my 4 

a ai etaamtaownt r 
ee 00,000.28 | | ‘ 2bnod 
60.000, 201.$ 00,000 Ghd SW: | _e : a 
oe eee ete —— ’ ; a 
00.000,00f,.I 3 00. 900,008 a. re eee Tie ooze fas iced a 
; OO. O00; DOS oo. O00, 06a re. * eorod f 
60.000,08 . 90.000,0¥ ie pee xerito” Se viasd 
30, 000, ast 00.000 ,aSE , ow vw  eieaye. e@nueseh.  . a 

-00,000, ££ 00. 00058 ul sare . 4. Seovetat 4 oA M 
00, O00 <2 O00, 000» be ty ary “ ie ; sitet rook ) e 
00.000, mesa OO . OSGi, BRIN cats ea Ws ; ' (eee | i‘ 


09.000.. eor 8 | 200.2 


eit mo bleq bre detsioeb aswae 26 bnobiwib s aot oft ee, | 

naw 00.000,19 . 1807 oft 26 gagnatged edt vs anthnasesuo piel ee 

| “ot 00,000,413 ,egethitad eda) te nee ert 10% ey 
ae eet Tot bios aiaw abtod edt «afoot tot OO 





hegisto saw somexclTEb ee oe bial ane teal ers ee Nk 






decd ‘pounato add tenqrotnt ae 
yascos ett to nobtieoq: 


overs old za ae ae 









PROBLEM NO. 139. 136 
(N.Y. C.P.A, Examination) 


The balance sheet of a foint stock company, January 1, 1897, 
shows the following state of affairs: 


Capital stock,.......- $200,000 Reel Estate,.......++-+ $ 50,000 


Crecitors,open ‘Plant and machinery,.. 85,000 

SOCOM er ces ee tines 16,000 Horses anc wagons,.-.-.-- 15,000 
Bills payable,....-..-. 30,000 Patent and goodwill,.. 20,500 
Profit and loss Inventory, .-..e-- nope ne £9,000 


GCCOUNGs «dnd ae meee o 30,500 Accounts receivable,.. 35,000 
Cash in bank, --ese+ee- 22,000 


#2°76 , 500 #276, 500 





A year later, January 1, 1898, after an audit of the books 
and accounts, the balance sheet stancs as follows: 


Capita] atock 0.0: +-~- $200,000 Real estate, so.+-es- ‘auton ea 
Creditors, open Plant and machinery: 
GCCOUNTS 4 wale ve 2 Hs <\ys 17,000 Balance Jan. 1,1897, 
MOCTEAROy ods (asa a chistes £5,000 LEO 7s s pet dae $85,000 
Profit anc lass Less depre« 
account: : Glation,«.+-« 8,500 76,500 
Balance last Horses and 
Sa a ilsean ti sa $30,500 wagons: 
Profit this Balance Jan. 


Pr ec eccinsn ste tO nSo, 900 1 169%, 6</tes 135,005 
3 Less depre- 

CLOATLION pease oy aou ae, 750 
Patents and 

ROOCWLiLL, .de wees * ee ao m0 200 
INVENTOY, ¢ @ « cere vee ese 65,000 
Accounts recéivable,.. 335,000 
Agency investments,... 15,000 
Cash in bank, «ces ovis EL bo 








$295,900 $295,900 


From the foregoing it will be seen that for the year a net 
profit. of $23,400 has been earned, while the accounts receiv- 
able are smaller, anc the cash balance on hand is less than at 
the beginning of the year, though no dividend has in the mean- 
time been paid. Prepare account showing what has become of the 
profits earned. 


Ref. 4-3. 


164 


Lake ; Pres et hee eee” ee 3 > & -\@ Aveo ae 
‘ : , af iis a r 1 a i ae 



















Ps vr 
.2eL .O8 ants (tck a ey 
3 OS aaee 


Bet 
(nortenimaxd pAeTeD v4) 
>) Se 
rest f yraunst .yregsoo voote takoy & to ¢ exe eoasisd oT 
rerteatia To otase gatwoflot o3 awoe — 


000 008% «+--seeeeloods Le?tqad 
nego, etot L999 


Fe 


000,52 ¢ iis. an vie gee Stee igor 

090,28 pe eyronicoes O68 tralt , 
5s age*tor 000, 3f£ vateae ee oweege 

| ‘efile 


900 ,,é4 sess (aMORBYW 
002,98 oe | £{Ltwdoos Pits +netset 000,08 ee ee seoren PP Lod 
grodmoval esol dns titoxd 
myooos 


000,24 seueeeeeoeee ee Ss 
oe aidaviosst atMVvonoa 002 .O& - eerrrree 


000, ce 
900, S$ ee ob oe gene at mae? : 
08, avs? eis | O08 ,avS4 
ears ea ae 
siiood eft to 7hous om tatte .893f .f viteunst retest 139% A. 
{ed oft ,atnsos9s Has 


-ewolloet 88 epbaeie seore BOs 


000,83 4 Le Wile faeR 000.0089 usveweequacee fattasd i 
:ytornicoen bas taal \2 gage ,etos Lbexd 
see ,edagooos : 


real me | «fl sons {Ba 000, FL we nee 
000, a3%. ee ee . TeBI ; 000,23 j suet ease tees eOBRBS rom 
“geol Sas tLtott 


aoreh seal 
o02,ay 906,58. weer Ol Peto an ;tavooss 
ue vy, bee sgevtou . Jesf esonelsd 
: eNOg ew As 008, 084 on 6 ae eee 
etdd trtovt 


rat, eons iad 
000, eL¢ sale gt COluae O08. cs OOS ,e3 
oe werceab aed 
oar. fe 88,8 eon  MOfSBED 
i fess See Braoret 
{Crwhoog 


see veeeag® 


and, OS oe ein 42 2 BPs 
Beebo: «eee: wooo ees g COT MEY ’ : 
O00, 56 « Gldavisnet e+ srO9RA 
4 OOO, 21 woe edrrond aowrts youens 
: Oaf.is a eane sees mene at deseo, 
e902, aes | 008 208% 
_ le Dee , | | | 
r fon a tser oft tot tet nese od Iftw tt gntensi? anit mort 
evroset etmyooos oto of iriw ~hemrae 199d esr: 289 To . #Ptot4 3 
+6 gait esol ef Sten ne sonsiad meee otf hora ,Toliame ots side 
$.,maey O09 to ackamiged add id 


"pksq mood omtt 7 


.gsom oft of sant Drebivib of 
peatse etilotd 


ett Lo eo59 





PROBLEM NO. 140. 137 
(N.¥. C.P.A. Examination) 


The bookkeeper of a manufacturing concern could produce only 
the following statement from its records on January 1, 1907: 


Manufacturing expenseS,......ee-ss-00+ § 4,622.89 
GPP2CS] StOGK seme atie ce Che cscetincseemar 10,000 ¢Q9 
ELQrve: ANT SGUs Ment, coer cena ce es eaeteee 124, 000600 
BTiS as nee Oe ee eas bes ab a'r es cb ewe e heme 832.14 
POSS TOS ee we its 6 xo 6 0 6s wee ee te ee 4 8,469.10 
First mortgage bonds (due Dee.31,1907) 15,000,00 
Materials and supplies (inventory),... 4,289.34 


Notes Payvetle, vans viene ore ey 5,000.00 
BQCOUMGE PeCCt I VAL; sine try ee see anne es §, 4235.23 
FSC OMI ROO, wes o us.0 3< 2 ce bs's 6 Siete’ 2,436.28 
anverest on bonds (7 months),....6.ss< SIS ete 


Interest on notes and accounts payable 282.40 


On January 1, 1907, the management is changed and you are 
later retained as a public accountant to conduct an examination 
and prepare a balance sheet as of January 1, 1908. 

You find that during the preceding year the directors have 
subscribed in cash to $7,500 additional capital stock and have 
retired all the notes ane old. accounts payable and that no 
interest. was paid on these accounts for the year. You also find 
that the plant and equipment was revalued at $15,000 and 5% of 
this amount was charged off to provide for depreciation, while 
an additional 2-1/2% was ordered placed in Reserve Account to 
cover repairs and renewals, the entire 7-1/2% being charged direct 
to Profit & Loss. The bonds outstanding fell due on December 
51,1907 and were paid, principal anc interest, in cash. 


An inventory of materials and supplies places their value at 
$2,528.19, the practice being to charge all purchases direct to 
Manufacturing Expenses and to credit back the amount of the 
inventory. 


The accounts payable (all for material and noninterest bear- 
ing) amount to $546.28... 


Of the accounts receivable, January 1, 1907, $4,968.18 was 
collectecac and the balance charged off as uncollectible. 


In addition to the material used from stock during the year, 
and the amount still due for material purchased, the manufactur- 
ing expenses were $3,720.52, all paid in cash, the total’ manu- 
facturing expenses being 31% of the gross sales for the year 
ending Jan. 1, 1908. 

Of these 91.3% was collected in cash and the balance,all of 
which is considered good,remains on the books in accounts reeeiv- 
able. 

Produce a comparative balance sheet of January 1, 1908-1907 
and state the amount of gross sales for the year. 

Ref. 24-3. 
164 
























ont Om scien 
(norsondmaxt <A.%69 «Lol te | 


-efno souhowq Siyos aisomo5 gatwwtos tus, * le sqeouwood 
:VOeL ,f yrsunst so eb109e4 atk morl te & go 


08.¢93, > & ce oeceeetba see q QQGneume qehens 


b 00.000, OL we renee err er er ere here ee 

r, piace da eee ee er ee Gnenahiiga 

; $1.$te8 LUI e seep anenpe res eeena 

\ Or .¢oas,8 se eee sovesvhaeeeas ees eu @heeme 

A 00, 000,85 (WOOL, [8.907 ob) ebaod sgsgtiom 
se, 06S,2 +++ <(erosmeva) eotiqque ela = 
00.000,.¢ * eevee eave ee ene eee ee efdevsq Besoll : ‘ 
ES.¢é:! gaa ese eeveweeerr ee woe yp SLdae 9987 etovoook - : re 
GQ.,052.3 «vases ch bn es eke eommeee gOS OSUNG etauoooA 
ay E0F ecvweecse(ecaccom F) ebmod m0 teoretnl 
Od. 88S  efdeyagq etaseoos baa eoton mo teorsial 


De eet an al 
= t 


ets soy bis bogmsrio ot tremegsnam odt ist a0 
motisafmexe ma towrbaoo of Sakencninal pris ay ; - fave r9988 te 
.800ef ,f ywiaugmst Io es goode oonsisd g etaqo 1g 
evar! ontot oe wtth off as9y gaibeoow edt shy tet? batt vor 
aya him Moote Ladiqss Lenotstbbe 00@,T% ot deso at peditoedue 
Oft + att bra 5 friaved etnuooos BbLo es eoefon oft Iie bouttot 
batt ceils vwoY. .tsey ore 10% adauooos eredd mo blag esw teviotat 
to R2 bas 000,219 ts Beulevet Bew tnoemaiupe bes tasiq- edd tect 
efidw aol Saiseyces tot shiver oF Tio hexntario saw gavoms e@ehdd 
1 ot tanoo9A ov cheat nt feesiq betebto caw B&\l-8 [snottrbSs ms 
; Poetth Ssogtsie geicd Ro\r-T ortine odd ,2iswonet bas ext tt toV09 
tedmaoed no suh {Let afi Lhored es go ebraod eff cool % EtoTT oF 


ae 


.fleso ME yt taotedne Dens iaqtoning ~bisq e1ew bua yoer, £& 


ts eulev viedd seosla sontauee has efettetem to yrotnevat cA oe 
ot tooth nenanowe fia gatero ot gaied aotioatq oft .eCf. BSe,89 : 
eit to truome oct aosd tEeto of Das noeneqxa gubastostonsM 


. 


exeed teorstninon Sas Saree tot {{8) occer gy gtaao gee ot 


enw 8f.50¢,99 ,VORL ,f yisunst eee etnuooos edt tO 
Loldtioeffoons es Yio begtsdo sonesied end Hees hetoel{ioo 


etaov odd ant <ub Moose moxt bees Letroten edt oF mottioss at 
ewiostsoes oft ~boesdotag Leinetam Fe Pre {Live tavoms ot peep 
quran {stot edt ,tess at Steg {fs $e 2 etew a9 
teoy eit tot eeisa seotg add to RL yo ‘geet i wast st gate 
ea 


| ye {fs,9oneied ett bas Aeso ak yea eh te ail tt geod 
_ svteseet efnuocos mi exood oft no ents s) serabienoa ak 


yoer-s0ef .f£ ytsunst to teste sonaisd ovitetsqnos | 
«wwoy orld bd st ae a TONITE 


PROBLEM NO. 141. 


(N.Y. ,P.A, Examination) 


138 


The following is a comparative balance sheet at December 31, 1910, and at December 31, 1911, 
presented to the board of directors of the Yestern Company at their meeting of January 5, 1918: 





Assets 12/31/10 12/31/11 Liabilities . 12/31/10 12/31/11 
*hand, +i. tons... Beas asagp 20,000 $185,000: Bond and mortgage payable 
Buildings, <—- arp 4~saseee 45,000 45,000 Bias cima) +s eee ee ORCA 
Machinery and tools,.... 86 , 000 89,000 Notes: Payables ut s+ s% va.~o¥ exe a OO7000 2,000 
Horse, wagon and harness 10,500 10,500. AGeOunts payable ,.i+...5« ie 16,400 19,350 
Patents jes + shaw @ «+= >< « 6,000 §, 000 Reserves for depreciation... 3,000 6,750 
Gecd@i it. «acess +e: 25,000 25, 000 DESCOunt’ O71. PONGS; 6 «15 ea ees 1,000 
Gah. 2.4.04. 8....e0.. . 28,300 10,500 Capital stock; 
Accounts receivable,.... 29,600 26,550 POC rer Pong yk es os eee ape 150, 000 150,000 
Investments - bonds,.... 45,000 ESCHIMES < Gr atu a haces oo lpee Bee eee 50,000 50,000 
Inventory of soods in SUPrplus , 63.45 aeons ee ee vies 14,050 $1,980 
PEGCCHS , «tem sews st >< - 10,800 14,620 Ro) 
Inventory of materials a 
anG? Supplies svr..s.... 6, 750 10,3500 
Agency investments,....- — & 680 
$267,950 $281,020 $267,950 $881,020 











Together with the above balance sheet, there was submitted to the board a statement of in- 
come and frrofit and loss showing the profits of the year 1911 to have been “28,120. The directors 
state to the auditor that in view of the decrease of cash and accounts receivable, of the absence 
of dividends and of the increase of capital liabilities they are unable to ascertain what has te- 
come of the increased profits of the year, The auditor prepares and submits to the directors, be- 
fore the meeting is adjourned, an account provoerly named, ‘hich is so arranged as to show clear- 
ly how the “estern Company has applied such resources of the year 1910 as have been lost in 1911, 
and the resources and the profits of the. year 1911. 


Prepare the account submitted by the auditor. 


Ref. 32-3 












yrenere eye seoonng Penge eees pts sng pon ox fae 5 . Soe 
vas Leponuces sug ge Exouyee of fps Acoe jar’ | “2 823 


won fye ,Ssafery- 
OLS FS pea db 2 38 | 
we OL SNS FUG 


on TAs I 






SUA pee gbby 36g enc 3 Leeonicss ot ope test toro $k PLAS pes joes 
| gu sccomps bhovehyA wureg* apfcp yo eo sinsuiog se go eyon chee. 
 broprre Of fps Aes” Jue sMgTpox brchsxsee syq: SMpeT ‘SS g£O FPS Nts 
q ot ‘Eye yuctsreas of Cubyfey sispryrgyee gpeA sre MCPTe FO CacexpoTU apyg pues Fe 
ire bo Acad Ti AjGu Of fPe gectevee of csap sug scconupe LocEeyaspye” oy Pageee: 

ee evouyue epe broyyige of pye Aes FOTT FO poac pect 233° TSO" row aT Rea 

‘$poas psysuce epecs* fysks ce enpmyfpeg fo fe posigq © egsee 
SLL LS} ST pseeg oy aes Of AvTN68 Of LFororA apeee Iu epe 

















i pESUC q nr ee ot ee & . 
Ss - FIT9 ambby ree" Ova vasaka o* 4R0 T0*200 
[TNasurotA of nerfexieye | 

, gt ee ae Fee oe tt ee : To"sa0 Te*es0 
- -wacupoxh ot LOOdS qu enzbyae**- ee ee ee ee ee 
Ee juasermeuge - pouge’+::* , Te*000 Gaeereny? «s+ owes ete has os cee : = 
 ‘¥Yocornure Leceragpye****+ $9* C00 S6* 920 Beet eticg* «+ =+--- PeRs + ome =~ Feo ee T20*000 
Be. cvap*: ye eee WS ea Se © ota pe Ca = 88*200 TO*206 cobr¢stT ALOCKE? 
= qQoogeiTT’ Ost asa enes hee ie £2*9000 $P* 000 Dreconuy ov povae* ee ees 6 eus ee T*’ 006 EF 
0 Se, Se ees 5* 606 2*900 Heectass ron cebasarsgjors: $200 2° 420 — 
Hores* askow ong psivece TO’ P00 TO*P00 )«=— ss w@ee@nuer Porkopretet+c ese rees re’ T00 78*°220 


© WeopiverA sng gooye**--- 2900 += BB*000-—- WOrer Bekzprat esse esses: ‘** £ 9B%Q00 8000 
 Barrayute’-- Sve@eteoes ease a oO 2" 000 2° 000 TAT DY +< ae ee ee osetee et teen vrace .* a * So’ 000 

Pe mo ES oe a eo a PSs ay % ' " ae reytey : #> - he Lo c 

- ePSOG 0° 000 SpP* 006 porg svc worphse |} pre 

= Ysera Fs\ar\s0 TS\eT\sT rropryreres ° TS\eT\To. IS\er\yT 


a DRGesuseg £0 fs postg Cf qiksefote oct spe jeefery CowbowA og ppoys vecgruG of temaAszA p* yaqs? R 
ay LPG Loyyoazue se gs cowlsiesyac psysvce epcer ag Nooswpckr of* Taro’ suq sf Pscewpek oy* JaTF” 


= ces {u*A* G® b°v a a ENMGMIVEL TOU } 


SHORTEN HO* TeI" 





(Ii 


The Jones Investment 


trolling interest in 
B Company anc © Compa 
at June 30, 1616, are 


Jones 
Debits ment C 
Investments in 
other companiés: 


A Co.,60% interest 


CONSOLIDATED STATEMENTS. 139 


PROBLEM NO, 142, 
linois C.P.A. Examination) 


Company on June 30, 1915,obtained a con- 
three operating companies, viz., A Company, 

ny. The balance sheets of the four companies 
as follows:- 

Invest : 

O. 


A Company B Company C Company 


(cost $900,000.00) $1,000,000.00 


B.Co.,75% interest 


at G0st. a" + 6 600,000.00 

C Co.,80% interest 

Bt COSG” "so uw ice ee 4 200,000.00 

Advances to A Co. . 100,000.00 

Advances to C Co. . 50,000.00 

COGNAC ea «4 « 50,000.0033 100,000,005 10,000.00% 50,000.00 
Accounts Réceivable 100,000.00 50,000.00 100,000.00 
Inventories ee 200,000.00 100,000.00 50,000.00 
gL) ll hair A 1,000,000.00 600,000,00 400,000.00 
Dericit’§ « na ee 





Total Debits 


| Credits 
Capital Stock 
Jones Invest- 


$2,200,000.00 1,400,000.00 


40,000.00 


~ 





800,000.00 600,000.00 


$2,000 ,000.00$1 , 000 ,000.008800 , 000 .00$400 , 000.00 


mane CO's «se lua 100,000.00 50,000.00 
Sire *b eos cle 200,000.00 _ 300,000.00 150,000.00 
Total Credits &2 200,000.00 1,400,000.00 800,000.00 600,000.00 


Surplus and Deficit 
Accounts as shown 
above may be analyzed 
as follows; 

Balance to June 30, 


BRAN ae gh pee $100,000.00 $200,000.00 % 4,000,00. $100,000.00 
Surplus Income: 
60 months to Dec. 
nS are $7 ee 180,000.00 45,000.00 25,000.00 
6 months to Jun 
30, '16 £1'7,000.00. 220,000.00 40,000.00 25,000.00 
Increase in value of 
A Cl.Stock s ., 100,000.00 
Dividends Paid Jan., 
A9L6 » at sds 217,500.00 300,000.00 50,000.00 
Balance, June 30, $200,000.00 $300,000.00 40,000.00 150,060.00 


‘16 


, 


Debits 


$200,000.00 $300,000.00 
164 


ee 


——-" 


“109 & Benistdo,3ief Of enwl mo ynsqmod Inomtes 
virragimod A wativ ,golnagmos natserveqe ootd? te 
dotnagines tol edt lo eteecte sonmsisd eiT .¥ae 





yreqnod 3 


00. OOO 7 «Oc iQ 
60.000,00£ 


00.000,08 


SNE A tte 


00. 0 v0 ‘. D090 


ee ee 


eSdf ,OK MEIGORt 
(aolssnimexd .AsI.d 


#:swollot- ag 


«teovnt 
yAtsqao0d & vyaserod A£ 


00.000,000, £2 ita 000, ¢ 


—00.000,008 


00. 
%.600,0£ 200 900, OOL 200.060 
00200063 “"00:000;00L ve 
00.000.00£ 0. as 
00,000,008 00. me 
00,000.08. Od 


Late 


09,000,008 00,000,008 Jf 00.000,008,.9% 








= 


e sOO A o¢ 
¢ e602 0 of poncaee™ 


eldevieoes gonzo0eA 


* 


00.000, 008200. 000 008200. 000,000, £300. T0000 ie 
00.000,08 00.000, 005 
99.000.0af wane 29 :900,900E 00.000, 008 

oon so ee ae 
90-000,.008 90,000,008 go. 200005 00. 900,008.88 


00,000,0053.00,000,2 # 00,000,008 Aiea a ten 


00.000, a8 


00,000, 28. 


OG. BON, OSL 


00.000,02 00.000 908 
CO. 000,05 a 


LC OE I A Ne epi pC 


ttolted bar exfarue 
iworle.as etarooo4 — 
besyfsene ad vem evods 


00.000,82 90,000,08£ 
00,000,058  60.000,0S8 Omer 





2O® out ot eonaled 


:omoonl a 
s99d ot wigs pe 
























128. tetito 
2-00 A 
“teoa) 


ea 
» « getvotneval 


> . > . tasls = 

+ » «» #ktotted 

etided Lato? 

| esther 

» Heorte Raligus 
‘efeevel esnot 

*- * +09 seert 

“_ * * ealquse be 


— atLBst0 LatorT 


rewollot es . 


. oe * art 


ams lqiue 


140 


Prepare a consolitated palance sheet of the four companies as 
at June, 50,1916, 


A Statement of the Consolidated Earnings and Surplur Account 
for the year to June 30,1916, is not required, but may be sub- 


nitted 


if desired. 


In preparing the balance sheet, the following additional 
facts should be considered; 


1. 


The holding company has no other source of income than the 
dividends from the subsidiaries, which have been taken 
onto its books when received. 


In accordance with a resolution of the Board of Directors 
of the Jones Investment Company, the following entry was 
made on the holding company books at June 30, 1916: 
Investment in A Co. . . $100,000.00 
Streive 40 wk we 2 ee el BO COO URO 


The inventories of the A Company include $100,000.00 of 
stock purchased from B Company in 1916. The cost of these 
goods to the B Company was $90,000,00. 


Part of the plant of the C Company was built by the A 
Company in September and October, 1915, at a cost of 
$80,000.00. For this work the A Company charged the ¢ 
Company $95,000.00. 


In February 1916, part of the equipment of the B Company, 
which was carried on the books at the cost price of 
$50,000.00, was destroyed by fire. The only entry that 
has been made in respect to this Loss was to credit the 
Plant Account with the salvage of $5,000.00. 


164 




























en estnagnoe m0 eft Yo teore seroed 8 | . 
| ae nia 


a ay \ 
Ment seiaed end bres eintnel begabttoanod 2 
dire od yam tnd ,bertupet fom ef 13 f0L,08 8 


r a 
* 


| | Lanotd tbbs gaiwol{Lot erie aaecte eonelad oft 3 
| . — ue :betsbtenoo § 


oft madt smoont te soroer tedte on ead wasye a 
} melet goed eve dotrw ,eebisthtedve 


| sboviooor nodw extood ‘BE 


etotootid to heeot orf +0 hoksetoees 8 dtiw eonshtosps a: 
esw yitne aakveflot edd yymagmod t¢anomPeevnt aanot, es 
(éfOL .OS enut ta exood yasqmoo antblod ert no 
00+000,00L¢- «© » «00 A mt Inomteoval | : > 
00,000, 00f3 « * * * * e A _* eu lone ” cae oo alt! i. 
Jo 00.900,00L9 ebufont yosqund A oct to eeftodaevet Aco 2. , 
seat lo teoo off -3fCL mf yasamod Fg mor? re ctr ar cee ae hia 1a 
eboog - 






00,000,058 saw vreaqmoed & orlt 


A ett yo tftud eaw yosqmdd 0 oft to toetg eat to 
40 teoo s te ,@fOf ,tedoto0 Bas tedmetqee at 

o ont hegraro bon A ae (heal atdt vol .00. ni 

| +00,000 dee .* : ane : oe Ht 


.vetsame? & edd %o saometsso@ ae te ttaq id rrandet ne at ait 
: otro ¢ 







to sotta teo0 oft $a exo0d sit mo 


tert yrtne yine of?  .otkt XS heyowteeh eaw wile eo iu bene We ) 
sdt tthers ot esw taol eidd OF tosqeot at sham 


+00.000,82 ta oer ort atiw een OnE Noe a heb s 
, par ee a ee Ath 


PROBLEM NO. 143. 141 
(Massachusetts C. P. A. Examination) 
Prepare a consolidated balance sheet of A Company, a manu- 
facturing corporation which also controls, thru stock ownership, 
B Company. 


The following are trial balances of the books, December 51, 


1915 
A COMPANY Debit Credit 

‘Real Estate. ee . ~ $200,000.00 

Machinery and Equipment ° . . « 100,000.00 

Accounts Receivable ° ° P . « §0,000,00 

Cash : é ‘ ‘ «. » 0, 000800 

Inventories, Dec. 31,1915 . ° : 1, 78,000,008 

Shares - B. Company(300 shares,par 

$100.00)eu0'% P . . « 95,000.00 

B Company Current Account aera F * 5,000.00 

Capital * ‘ ; ‘ ‘ ‘ m $400,000.00 

Accounts Payable ° . ‘ ; . ‘ 50,000.00 

Bills Payable . . ‘ F . ‘ . 20,000.00 

Surplus . « . e ° ’ 19,000.00 

profit and Loss for SLs . 2 ‘ 6,000.00 


$475,000.00 $475,000.00 
B COMPANY Debit credit 


Accounts Receivable , i $ 45,000.00 


Stock on Hand, Dec. 31, 1915 . . «. 26,000,500 
Cash . ‘ * ‘ ‘ «. « 8, 006808 
Treasury Stock (100 shares, cost) . «bt OOORUG 
Furniture and Fixtures . ° ° ° 5,900.00 
Surplus P ; 5 y ; § 20,000.00 
A Company Current Account . . ‘ ‘ 4,500.00 
Accounts Payable . ‘ ‘ . : ‘ 10,000,000 
A Company Drafts Accepted , ° « ° 5,000.00 
Capital Stock (500 shares,par $100.00). 50,000.00 








$ 89,500.00 6S 89,500.00 


The stock on hand of B,. Company was manufacturec by A Company 
and was billed to B. Company at 10% in excess of cost, at which 
value it is taken in the inventory. The difference in the inter 
company current accounts consists of a note issued by B. Company 
in settlement of a claim for damages but not entered on the books 
and was paid by A Company. The directors of B. Company declared 
a dividend of 1-1/2% on December 15, 1915, payable January 15, 
1916, which has not been entered on the books » 


164 



















" 


a 2 Ot 


3 ets: 
«fe htiiioad .ciood edt to seonsisd {ated ons 3 iy 


#thend 


00.000, 0004 
00,000,08 
60.000, 08 
60.000, ef 
00,000,8 


00.0600, 20a? 
s?tHer1d 


00,000,08 3 
00,008, 3 
90.000, Of 


v 00,000,.8 


00.900,08 


00.008 ,.e8 & 


LON aR Rn tee pee 


yeeqmod A yc 


tar on + eegaORa 
(nok darckmaxt A 44 .0 ations 


enient & ,yiaqnod A to tooce oorteied bese. 
.qirietonwo mpore ont ea Osage, oels donaiw | 


sido 


00.000, 0088. 
00,000, 00£ 
00.000, 08 
00,000,0L . 
00,000, a 


Q0..000, 8% 
60.000,4 





00. aaa’ 


— tided 


OO, 000, a he , 


00.000, as 
00,000, . 
OO» 000, £1 
00.008 ,.¢ 





00.908,.e8 3 





seturtos tuner es 
faicw Ie ,Seoo to eaboxe nt 

. barn aad mt gomevettLs sft | 
o «8 vd Sevest sfon &« To: etebaiod 

Dn ent mo botatne. tom tud 20 
: nese ee ynacmoD .& Qe etosvoor 
£: Stapeeny efdsveq ,@lefL ,of 
. aiood edt mo Berean 1 


_*» «¢« + * 


 *#@wee ese © * 


— ca ee Se 


= oa a a 


* 


- HhetqeooA & etiaxt . 
(00,004! ‘Taq, eotade eee iad tadiqged 


yer te ya 


poner 


> *& 2 € 3 «24 -2— 


vers ae 


ia 






ine ar 

yd otetent B. dec, sotioane 
“nitty 00.00L 
ao “gm099A dood a 
» = » a e 

* * * aide JT atavoooa 

: * od ® o | [oscars oe 
» © * . . « en 
‘ . @Of@f tot eeod Sas tf 


‘yung & 


: eldavisoenh TROY 
. Bree. fe .oed ae no woot2 
Bins . desd 

{teoo " sertacte 00r) “xoose yweseiT 

ie eowextt baa ews het 





7s * # 


qmoo .@ 20 brtadt mo woods ect ay 
aqmed .d ot be: {itd es brs las 

raed rk meted et ot = | 
greTws yA sf 
enter mare ype et tye Fyrpaeine 
§) ect 2% inn Shee one 


o 


‘yar | 


A is an operating company and B is a holding company. 


PROBLEM NO. 144. 


(From Penn, C.P.A. Examination) 


The 


Following statement are taken from the books of the respective 
companies, viz; 





A COMPANY 
Assets 
Cash ry Hand s e e 
Book Accounts Receivable ‘ ‘* 
Stock Inventory. . 00 
Prepaid Accounts P 4 a - 


Sinicing Fund Trustee F 
Premiums on Sinking Funds Bonds. 
B Company Advances ‘ ° ‘ 
Inverntments,B Company Stock. 
Other Investments « ° « 
Plant, Franchises, Etc. 


2 . 


LIABILITIES 


Book accounts 
payable , 
Wages . 
Bitlis Payable 
Accrued 


Reserve 
Bones : ° 
Cavital Stock 
Surplus . . 


Cash on Hanc : é 
Accounts Receivable 


Investments: 

A Company's stock 
Other Investinents 
Plant Franchises, etc. 

Deficit : - ‘ 


Accounts 


Accounts 


e e 6 68 


. 12,000.00 
» 8,000.00 
» 50,000.00 


» 12,000.00 


ee fe @ 
*-@ 6 £& 
e e ® a 


COMPANY 
Assets 


& 14,000.00 


6,000.00 


&500,000.00 
500,000.00 


164 


$ 35,000.00 
25,000.00 
81,000.00 


7,000.00 
15,000.00 
700.00 
45,000.00 
25,000.00 
5,000.00 


1,340,000.00 
$1, 578,700.00 


# 82,000.00 


65,000.00 
750,000.00 
500,000.00 
181,'700.00 


$3,578,'700.00 


S 20,000.00 


1,000,000.00 
1,250,000.00 






; “bat ry 
‘hae it oabanadl Pas 


nt bore we ve 
ett eyrregiios gathfod s ef @ bas wenn cures 
evitoogeos elt to 2tood 29 mone Reins 










7 ae jp Bet Pe ' 
veaanoo A ee 
atoeea 
00.000,38 2. a 
00,000,288 
00,000, £8 “ 














00.000,7 ‘Me, < etasooDk ees aN 
00,000, é2f 0 0otaurT BawG gatiate2 © 5 
: 00.007 | ‘26108 ebr aaisink? no emuiootvt 9 
, 00.000,28 s _« s80msvbA YHagmod & ty ay al 
f ; 00,000,é¢ lyoos? yasqmod G.,esagastazevnt 





‘ 


00.000,2 yw. sl”) OtOMtEDYAT “tedtO. a <a 
00,000,088,£ . « 94% ,apetcomera ytaald VP te re 
i 7 y ; ef ie 9 


90.008 BS8at% 
CMEPIITHANI - te ee ee fan 
ey a atavooon NOOm ane 
00.000, 35 Se - . nent ; 7 " ; 
OS . eogal’ ht NE 

00.000,6G@ . .« efdayed affic 
/00.000,88 § 00,000;8% . etnroooA Houtaos i ed we 

00.000,88 a 


“f 


etnuoooA avacneh x no 


o , | * a 
00,000, Nerhy + . * : * . shod anh Oe i 
00,000,002 se oe Ee Soot? ‘fpticsd: gS ne 
00,007, £8f 6 ae, lg eh Dee exlanue ‘i 


hn oer. 
a) am 4 ake + F inee’4, 7 ) 


ae ee ae 


00,907 81 .£% Ae. 
YIATIOD @ ibn Pie, me EE Cae ages 





? 


> | _ 00,000,086 G 6 6 S94 Snel fo reed | 
00.900,08 - “) 00.0 ee So Se ee ae 





; oA dle 
: e » —-— e ce < a : 4 wa 
i ibs ., ‘a a Pad a f ¢ 





00,000,000 0f 
00.000, OgS,£ 
00.500.88 





LIABILITIES 143 


Books Accounts Receivable . $ 7,000.00 
Basie Payable « « « we 130,000.00 
Accrued Accounts . . » « 10,000.00 $ 147,060.00 


Da@carGompatiy >>, 000:.cowmos, $1, 500.00ess 45,000.00 
Bonds Is sued e eo e e 6 e e e ee 1,@00, 000.CO0 
Caniaaic Stock: Iesuednries.A erceh.e (hs +» by 100 , 000,00 


62 ,292,000.00 











Prevare a consolidated balance sheet 


164 


23aTTIITEALl 

00.000,% ¢ . @fdeviessH esavoosA elook 

00,000, 081 * « « « @ Sidayed alf{id 

00.000,75f | 90.000,01 *“ © « «+ €@%toooA bowitooA 
00.000, é4 pis ” * ry ° 3 * * s . YyNsegmop A SoC 
OO.000,00Qf <6 \2 7a es! « 8° 6 ee heyeal shrrod 
00,000, 00f,.f£ . * «6 + « « .« Beowesk tigese Latiaed 


Ses . 8a 
Pek odce as 


teede sonsisd 5etsdtloenos s etacetd 


S6L 


PROBLEM NO. 


145. 


(N.Y. C.P.A, Examination) 


Company © was incorporated in May, 1910, to acquire the stock 


of companies A anc B. 


Gompany C's capital stock is divided into 


preferred, 32,500,000: common, $1,500.0003;a11 the stock is out- 
standing anc fully paid; it has been issued (a) for stock to the 

stockholcers of companies A and B, (b) $20,000 of perferred for 
The stockholders of A and B 
received preferred stock for the intrinsic, undepreciated book 
value of the assets, as reflected by the following balance sheets 
of their companies at June 30, 1910, anc $300,000 of common stock 
Givisible cqually to companies A and B. 


orgenization expenses (c)-for cash. 


Plant land,..... & 


Building and 
equipment,.... 
Machinery and 
transportation 
equinments,... 
Investment in 
LONG ga ccseeess 
Investment in 
bonds ,Co. By«« 
Investment in 
BVOGHS pe ecerae 
Goods in vro- 
GOSS) sods ks ease 
Finishec zgoocs, 
Materials and 
eon es. cae 
ORG ba were ae hae 
Accounts re- 
ceivable,..... 
Bemand notes, 
COe. Bae tia 5.0 eo 
Accrued 
ARGO ESL , «s 0 5:0 


Between sity 
organization expenses paid in eash by Company C, $5,000; 


occured: 


an 
) 


A 
90,0003 
254,000 


21,000 


60,000 
200,000 


45,000 
69,000 


58,000 
17,420 


51,000 
5,000 


1,800 


B 


195,000 
318,000 


17,000 


150,000 


$1,100, 82051, 245,756 


A B 
Capital stock 

outstanding: 

Common,......% 700,00081,000,000 
Preterred jw. esx akOO 200g 

6% bonds,1915 

J & J,and 

interest ac- 

CPUC as 20 40 92,700 
Accounts pay- 

ADLG, wae <ih0 59 , 800 41,656 
Loans payable 65,800 oo , 000 
Audited vouch- 

ers unpaid, 18,520 13,400 
Demand notes 

payable,... 5,000 
Reserve for 

depreciation 24,900 30,000 
Reserve for 

doubtful 

accounts,.»- 5,000 2,000 
Reserve ror 

contingen~ 16,000 
CLES pstesvvcas 
UOTE pie anes 111,000 


$1, 100,820$1, 245,756 


1 and culy 31, 1910, the following transactions 


intercompany advances by C: to A $60,000, to B 360,000; Company A 


reduced its accounts pavable by $25,000, its 


loans peyable by 


$30,000, and its audited vouchers by $15,000; Comoany B reduced 
its accounts payable by $29,500, liquidated its audited vouchers 
unpaid and its interest cue under the bonds. 


164 





















tl «CSL OM MERION 
(nottemtnsxT .A.%,0 oYeit) 


toote edt situpos of .OLeL e¥S% mi Setstoatoont 
otnt Sehivibh ef aooce fsticag e! 
“TUO at Yoote orft f££s7060,008,. £8  mommos 70 
Sit oF Soote tot (8) bevart meee earl tt :biseq 
tol Sertetiveq to 000,08¢ (d) «i Ons Ae 
G Sas A to etebforioote ant 


& A : A ; 
= * , i 
Xoote Istiosd 000, 2er 3000.08 a c+res, basl tueld 
:anihastetyo # Ors gathi tye 





000.000, £2000, OOF GoaveseetOnimod 000,818 — 000, 5d8 veers eSoomgiups 
000, OOL «0+ borrsierg . | Sane vrentdosy 
aLOLl,ebruod 26 | nolistrvoganass 
ba8.% 3 & 000,%L 000,18 - eee, 8deemetcpe 
“58 teertetat mai tnenteoval 1% 
DOF. Se seen ey DSHTS 000 ,O8L ee eeeeeee DNBL ‘. 
“Y8q ectrnsoooA tf tnemteevat ey os 
600.5 008, 2 oseene Olde . 000, 08 see8 200, 85n0d LE 
O00 , 2é 008.53  eidaveq ensol af gromteaval a 
“ffoLroyv Hes BrA 000 , 008 eaveens -QNOOte a. 
002.5f£ - OS8.SE .Oisqats ete | “ote mi ebo C 
Betorn Saamed Boeken mae  oteke Rene ) 
WOO,.2 Ce afd BY me OV 000,25 Wi . 22005 ni ee 
| 104 oviesed Sn elettetem 
000 .0& 008,58 nobtstoerceb 006, [2 000,83 soue-  @OLfcgre 
. fol ova~seed avr Mth a | OBS, VL ee +.fesd m) 
ivttdyeb “8 edmyoosA 
000, - 000.6 .«..8%auooss 005,8° 006,L8 ++ses¢@ldsvieg 5, 
. tO. syteeed i sboson basmed = 
000 ,.af “nrounitnos 000.2 te eee seeed 20D ; 
ceeeocee, 2OFO ' DertooAd 
000, £££ hs ieee , sulorse 00s £ y seveeg tee totat | 
Sonera terhtesenanten otsstincntbeatoreiione ot. a ie amen ene aaemnsnaeiethtiies va 


SSM". SDS, £9096, 00F . £8 7 SEN BAS £2088 ,00L . 1% 


enoftosencss gntvellfet ocd LOLel .L8 ¥ios Sota lf yu, moowreg 


7000.2) .9 yaagmod vd cleso at oioa eeeneqxe notsesiaeste : Setrve90 
A YregaoD 7,000,082 & og +000,083 A oF :9 ¥d egonevbs cass 


Ye eideveq eraol att 000,889 yd sfdavaq esmooos tt! boombox i A 


Deowbes € yaeo$0d 000.513 wd ersiovow bedthus att bee ,000,083 


evsrovev Sesthurs ett 28° S5tooee 2008 ,08¢ ¥d ofdayac asnuooos ett | 
+2>00d Silt tober eS taeteint ett baa Bisqay 


wk awk 
aon : Hae ee 
Be 1 » - 


| “ A 
7 f ‘ 
. : ; ‘ LA ai 
a» V5 enh) ae ee ee 
Ta. G@ 





125 


The manufacturing operations of the period show: Company A - 
labor, $10,000; overhead expense, $8,000; materials consumed, 
29 886; inventory or goods in process, &A6, 600, of finished goods, 
$50, 740; selling expenses paid $1,600; administration expenses, 
42500; sales, a72, 500; collections of open accounts, 386, 400. 
Company B = labor, $3,600; overhead, $2,350; materials, 55,2103 
inventory of goods in process, $40,500, of finished goods $46,380; 
sales, $98, 000; collection of open accounts, $109,150; admini- 
stration expenses, $3,000.75; selling expenses, oe 040, 


No materials were purchased during the period and the current 
expenses were vaid as soon as the invoices were audited. Company 
A declarec a ¢ivicend of $100,000 and Company B a dividend of 
25,000 
ri 3 * 


Prepare the consolidated balance sheet of companies A and B 
and €, at July 31, 1910, to be submitted to the directors of 
Company C, and so arranged as to show them the exact detail of 
the properties that they control. 

Ref. 34-4, 


164 























| «= A Yeaqmod :worie botteg, edt 20 enotssrogo 3 
ae domvemos efetiotan ;G00,.8@ ,seneqxe & 

Rea Fs eden Serfaint? to 008 , B82 <aeeoot%q ot 25005 
a peng § noltatieininbs 7008, £2 bieq eeene 


att 


CU, 4 e008 ,.938% ,efroooe meaqo To eroltoelfos | 

D . sors 33 “etaivotam 088,22 peer. aT ee 

1: 7028, aaa ehaos heres? Yo , 0028, 08 will Sebadv Bee 

oe etntrds ;O8L, COL) ,etaveses meqo to mot oni 00,16 a6 

ae) i 030, £6. ( 2OBNEGRS gatifes iG¥,000, 5% VA me tonte 
is 7m he i amity ed bo ae 

i: grate eft dre bokteq att qrrkisb: farelasternitiae atew els. m 


eet em D hes this oaow @9otoval en? sa #00 & es Disc etew “ 


| { eeele: 
f to beeh ivib s & ymaqmod bas 000,00f37 Io baohivis 8 betalfoeh A 
; | ~\ 00 @QO0, 88 og 
Peye Rg PASE: oe 
8 ine A esinsgmon to sosde oonelsd hbesabifoenco edt erage 4 
to axotosifs odd oF bettindye ed oF ,OLOL {8 yiut vs odkane i” 
to [isto toexa odd modd wore od es beanaevts oe bag ,.0 yreqmod ul 
»foutnos yods saris asi tieqorg ort a 
BS ster 
| . | Dim 
SOL - ; “ee gee ail 
‘ / SER ” 
4 ) le ; \ ok 
; “y " by @ +) F 
; aay eran ft 1% 
i ai Pg 
on ) teas 
‘ ot: aS Ant ih 
“ r Lenape? 
ate ray he ‘ tee ea 
. fy a 2 in ; is " 
rs in os MRR aera Pispheg2j 


ee wt, Wo wale PR a 
1 Ay sie et ie lek hal is pts F i EE fr 

j rm ‘yy ea 

YY ) 


fv aap nae 
= a at mh 













oO 


PROBLEM NO, 146. 14 
(N.Y. C.P.A. Examination) 


The A. B. C. Company, engaged in manufacturing heavy machinery, 
acquired tne entire capital stock of the D. E. F. Company engaged 
in the foundry business and the X. Y. Z. Company operating a 
machine shop. The entire output of the X. ¥. Z. Company is 
shipped to the latter company and billed at 10% increase over 
cost. All castings of the D. E. F. Company are likewise shipped 
and billed on the same basis to the A. B. C. Company. Neither 
‘the D. E. F. nor the X. ¥. Z. Company has any outside customers. 

The balance sheets of the three companies at December 31,1919, 
were as follows: 


BALANCE SHEET ~ A. B. C. COMPANY 


ASSETS 

ee he OE nc pale tht oe 0 sedis eevw#eee#8e $ 115,000 
MOCO NSCS VALS pinnae wkele one a este to ee wn 265,000 
NOCGS PECETPRdlEe, cece saes ST ECEee eee ° 150,000 

Inventories; 
ES ge dg 0A eg ee er rae 75,000 
OW MEGCOC LS ys au bio © nishalalee iar sis einiale s. eae ta ; 90,000 - 
MGer Le eee or UP CGS, esse wee aon es ee ee 100,000 
PUTA SOE AVES) Sw die wid vs" Sdve ath ae. ae . 85,000 
OR ee ORIG Giaty cen eitiane ea, ens nn cae ds, wiahade 60,000 
Capitel stock ™ D. EB. BF. Gompany, «..a0ccess 100,000 
Capital stock mani ad ‘saps oe COMPANY, sevececees 150,000 
TOE sta ae ho wees ecw shin ates teh. 5 LOO pO 

LIABILITIES 

Capital stock, overs. ee PO eee 750,000 
NOCSS PEVADIS Ps Ors Ovin oP OMe bie RES Oe a ere 10,000 
ASGCGUNCS (PAVRDIE F552. dle Shas Owes eae 200,000 
Surplus,cecerees esewee#e#ee aeevee#fe#nehee#eeee#ve #404 @2e282 86 230,000 
TOLAL gan's bas BP AM nt 1,190,000 


BALANCE SHEET = D. E.. F. COMPANY. 


ASSETS 

es ak sd ea eke ee ek eo ee??¢e. 8 @& Seremens + Fa tf @ *@¢ 7,500 

Beeettee PECCIVADIS , ous bie oc ans RW eA eee oo * 75,000 
Inventories: 

PO Ee EL ea kee sep eee eee heme One dees 40,000 

MEwOraG) In PrOCGSS, wens acsene <P . 28,000 

Pe Dr OCUGE us ko a0 0 vase aie nee se cree ‘ 25,000 

TOCA ieee se the a eee a@een8#¢ @ eee $ 176 , 500 


164 is 


7 ne hs 
6S an | 
i, 4 

Ra ; 
' areal 





OSE OW MEIFOAT - : 
{aoltsctmaxd #AsG.9 A} en 


| ats an ° 
Vtenidtosm yveoed gntistostunam af bezegns a UH 


|  begagne yreqnod .f .€ .@ oft to doota Istiqes 


Biss, 


8 saiteteqo vasqmod «8 .¥ 4X oct bre etontesd yxbrusot edd ot 


| ef yasqmod .S .¥ .X edt to guqtvoe extire - 


Tevo sereotiont 


ROL $s bef{lid hrs yvaaqnoa tettel 


7” 






i. » 









ot bevtiupos 


oo 


Beqaive eety 


‘ONIr ets yosquod .f 62 .¢ 


eit to egrttess ILA 


or ee 


agins 
aT20O 


Teritviev .ynscmo0D .D .g .& Bat of 


eleed omee ost mo bellid ons 


-EvomoteuS Sbieive tia ead yoasquod 


+S 4¥ 6X oft tom 69.2.0 ons 


eCLOl [8 tedmooed ts ecSiasgmos sends oft to etoar's sonslsad eft 


YUAIMOO 1.9 .@ .A = TESHE TOMAIAR 


000,af6F . 
000.498 
000, 08£ 


000, 3F 
000, 0@ 
000, OL 


000, COL 
900, 05! es ale 


000, 00f , té 


000,087 
000, 0£ 

006,008 
000, 088 


O00 08! £6 


QTIAeA 


TSO eRe HF ee eM error ese taectnesvances gfRBO 
teecoreee teas sereoruceng SiGeviaooyt etnsoood 
Cote e eee nes weer seen ee SlCBViEeot Estoy 
 - gee tvotnovnal 
TOOTH OMS M Sere see enwsarssesene SEMEIERD 
St eeoneev Bune see €a Ovecnvteeovcee Lelietam WiFi : 
seeve 2e090%G nt [ebistesij 
see newe ge BONO Seretnte 
Tesoro seer estraveeersesgtouoar betelnty 
teoeeseeee ¢ THISUMOD »T .t .d + vloote Latiqed 
teeeessonee VBGMOO -S .¥ .X = toote Ietigad 


ese. © 


erennmeeo eRe ewe eee 


‘THT Oe eee ee eee ae sews 


SOR e ee meee e see wrens gLBPOT 


°F ITLIIGALI 


Tt eee ee nocsereseneseene GOUe lattgad 
THOSE O TR ee eee reer eee eee eee SOLOS ED ester 
SAHOO oes wom ter eeeen wees wy SLABYSG BdnsoogAd 
aaa abet ie pile Nich idl tls oso ded ie nts Noe 


sf @ @& «& 


Serre ee 


YMAIMOD .Y .2 .d = THANE TOMATAG 


008,7 
000, at 
000,02 
000,28 
000,53 


006 ,avL 8 





ETaaea 
Pee eee ee ee ee ess! | ; 
Tote eres eas erseesesse eee SLOSPESIOT BIMIODDA — , 
, teelvotnevnal 
TORT t ee ee ere wwernev env eerws gh Sitotam wan rf ald,” 

(tees teen vesstesee BOOSO%G m2 faites ve ee 
TSO Pee eee eee ae we eg POINT Sede tr q 3 


se @ 9? 


TOTO Oe eee www reer sewed 


i 
a ‘ 7 ; 
. io 7 
af i eal (o >on 


‘ewolfol es etew 







re, 


= 


ee a — 


a 
wy 
’ 
' 

, 








LIABILITIES 147 
Capital stock (1,000 shares of 100 par value each) $100,000 


NOCSS POVADLC, coed eto teen dest ee tert benrisennvceverer 5,000 
ACCOUNTS PAVADLE, sevacccsscsusebucmmetesescedescene ‘ 7,500 
BOCTUCO TAXES, eee ec ees ee shaved eee eUOw sees ces nni owe 8,500 
SUE DLUS . 6 sess 8S wie eke eee als ole whe Ae) ee oe ee 91 «SS «er 54,500 


TOCAL, gecccassscrerecesereresrese G15, 500 





BALANCE SHEET - X. ¥. Z. COMPANY 
ASSETS 


Seat, MAA ee aes LEGA NGG sees ease ee kavewe G 18,000 
RECOUNTS TECCL VALS, «een imnwne series mie tn ag tO MEE He 8 8 65,000 
Inventories: 
PECL, Ree Ce Natale te a ete wy nnin oh cn ieee aoe aye # wb eee te MOP 350,000 
ME CETIAL Li) PPOOSSS, cisareisiewececee res daety oes o ele 45,000 
TES Cy OP OCAEO Gio ndetctevscesontiereib iene cis as Daa es « Oe 72,000 


ied: o Leaner pea So6 hae ERLGED WEEE 0 DEERE F OOS 
° —— ee 
LIABILITIES 


Capital stock (1,000 shares of ($3100 par value each). $100,000 
DOCOS POVOULO se tse es eh debe cect ecétevecvawereebee ene 5,000 
ASCOWIGS COVA LE Mocca Maco ding pee SAAS ls 6 eae eee 67,000 
MUP AUR se eee rW Sb bee k ra ewssaess ore ree res ore eee 60,000 


OCR ie Chaise 6 hk ENO 0 Oe WHERE Hits $230,000 


All of the castings in the stock of the A. B. C. Company were 
obtained from the D. E. F. Company and 50% of the inventory of 
finished parts was obtained from the X. Y. Z. Company. Of the 
finished product and material in »rocess, 25% represents castings 
and finished parts secured from the two suhsicdiary companies, 
diviced into 10% castings and 15% finished parts. All raw 
material usec by these companies was purchased from outsiders. 
Settlements among the companies are made by check. 


Prepare a consolicated balance sheet of the three companies 
and also a statement showing the amount of the invested capital. 
Assume all necessary information not included in above, 


Ref, 49-5 


cag pat rae a oe 


> 1 


VoL ) 


| 000 0068 liad sufoy asc 0OL§ te Saieite 00 Be: 7 


WS"t 


»emo5tesvo got? Secatome sew esinsgmos seeds yd heew f£ 


selmeqnon serfs edd to teode canned g detest saat 
sfatiqes hetsevat eft to tavoma of% amtrforte tate 8 bye ot Das 





; bs sans 04 + 0. o/s NISC IOP ae Me 


900,088 os vee rons¥ou dee dws Wena ; : - a i : 


etov yaramod .0 ef .A oft to deote ant ni egattens ent to [fa. 
to yrot¢aevnt oft to 02. 
aft 10 
ors aak BIOSESIGOT 
esinsonoo 

























ft 


| | esrrsTeata 


Veo 
TEST LOECOPEREETSERCE TT Tey 4 


Tt eee weeeererreerene =v 
Coren en mah aes. ke 7. ae re a 


PAAHSE OO Rei hae ee 


eM@eneezpreheeoe 


See eerteeeveuee 


oo 
teesdreseceeesseerseensenee LOGO? aks 
oe WHAIMI °.3 x oX * TSTHe ZoMAIAg | 
ergeag 1" | 
; a} 


aah had ic oly al nds be 9 ny ne asp etrvooosd | _ 
:eeltodneval z 

soo seveveenesbesesesesvecnghShT6dam WOH a, a - 

Foes eer eeeeeresvensenneg 8e0nong of [etrstaM - 


Bet Et ee ee Sesatees, oa : 


eeereee#ee £ 


eee 8 & © 


‘) 
* 


Cesc rae e beeen eens Cece e ee eLOFOR 
| CRE TIMI Gadd 
«(a (089 euLav teq oorg to netede 000, £) woose 


foatge | ; 
POPES ee ee ee ee see efdsysa a ; 
ee euer eee — 
SATOH eee Reser ewer nee eesseese nee  TLOOYAG eleseueh 2 2 


scorns eeedeesy eds se hs tee ya *** er eee eae tas 
a 


ie aoe 


‘His yargmod .7 .2 .7 oft mort bonktasdo -« 
svasqeod .S .Y .X odd mort Seristdo exw edtaq hboretnt? «— rs. 

R38 ,ccosote mt Lstredam bas touhorc eyes. 4 a 
yistoredse owt sd? mort bewurode as 9 Horle tart os oan 
retiag boctebrtt: ROL Sue eanitess otmt iboats : ; 


-fosdo yd sbem ots asiaegniog ont ‘err (eta tt aa 


CLA 





eevods at S5ebulont Jon nobseerso" at re : ile ome eA om a | 


ae 


AGENCTES 148 
PROBLEM NO. 147. 
(N.Y. G.P.A. Examination) 

A. B., a commission merchant, doing business on 5% basis, 
hands you the following abstract of his ledger, showing his trens- 
actions for the year; furnish A. B.'s capital account, showing 
his original investment, a balance sheet and a detailed cash 
account, 


a LeM ean S64 olny cae kate eee Eee EOE S Bhs O74 ok or Rw 2 $22,500.00 $30,000.00 


pk es ee ag Sie, as le eee 1,050.00 700,00 
Claims and allowances on settled accounts 

ONLY psec bet et esa senescence wecesserees 300.00 750.00 
EXPOMSO Ves an Ge aves Eee EAS eR RM A SE etc a eh as 450.00 


Customers’ AGCOUNnTS «case scanveeeasscercere 90,000.00 . 22,500,00 
CrOGEtere “A wesounee ys ia is ove seeds ce eevee 2B, 875200 °° 19,925.00 
CASS 6 nan ek bee ee WES eee ee bee be te ee ed 29,500.00 20,475.00 
DRSCOUNGCH SOC Ty CWS atk WON ea OWE he Deco wees 200.00 








Ref. 28-5 e 
PROBLEM NO. 148, 
(N.Y. C.P,A. Examination) 


A & B, commission merchants, suspect their cashier of eme 
bezzlement. From the following data determine whether or not the 
their suspicions are well founded, and produce a balance sheet and 
profit and loss statement to prove or disprove the suspicion: 


#eepwee#e#tewenee7eweteteereeesn @ $42,400.00 
Cash receipts, customers,.sssceeecesscesae $42,000.00 
eee dee Pree 2 ee 2 ee 2 ee ee ee ee oe 4,240.00 2,480.00 


SOLOS) Peeves URS sbehe nee wea sexe es 


Pity pis< we mh os eh eww ewe es ree Er ay eee 2,120.00 1,240.00 
DOCKOCHAP AOS hs OP Ve mea eR Rae ea ERE SS 212.00 124.00 
CUSTOM “HOUSE Ghar GOs pies ewsv isda ts wenn ia 90.00 45.00 
Interest (account sales at 6%),..e.cseeeas 248.00 
Commies {on 2162 ich Sales) ieee ee ade 1,240.00 
Dee SALVORSS gop cask es Pe eee ee awa aee 2,000.00 

DOEGMONTErY UGOVEANGES Cie i ieee Sree eee we as 20,000.00 12,000.00 


Acceptances against shipments,....seresees 12,000.00 20,000.00 © 


Analysis of account sales ledger debits: duty, $875; freight 
$1,560; dock charges, $70; custom house charges, $40. 


Ref. 57.2. 
164 


eT Le Gay ee ee ee ee 


r 





Bas OAT OMEDA yes 
USL 0M MEIAORT areas 
‘ iv ) sf sag | 
(moltsntmexd .A.9.9 Mp rt: 
.etead NB mo eeonteud gatob inacdotom coleekmnod & 
~emat? att anitwode ,toghel eld te tosxteda 


aniwode ,tavooos Lasiqas a’. .A detest ,rasy one 
tess befteteh « bua geste somalad a ,toomteovat fan 





f ¥ 


tgtto eid 
—  FaMMOODH 
00,000 , 082 00.008 , 388 son pb eseeees ecndan@s tee OMmmmEgee ees eslst. 
00,007 00.080, f Sealvicaha ee mpnaaR TIRE He PEE 
| stauooos belstiee no seonawol{s bre emtel[d 
00.06% 0,004 ser ddabesacecddducs COMMER IO EMEC Oe 
60.068 irre e rN Ce de 


60,008.85 00.000,06 ete ene ncesset saeene 4qneauomur TeromotenD 
mo.ase,.ef 90.87¢,62:°" » sella ece+<o.ceds Sse ‘exostbetd 
00.@75,08 00.002 , eS Le. cag thee oh» 406 teen es ee 
60,008 « ce bie ed b4k4eo1 as2b een eee etavooeld 


AY 











| 88S. YO 
.88f OM MEIGONT ee 
{croitanimaxd Ae TD otcee 


uma %6 Tetteno thedé toeqewe ,atnedotem mnoleeinmoes ABA 

av+ toa to ‘vontedw ontmreded ats) gntwolfot eng mora .tnemefssed - 

bee toorce soratad a soubor bas bebavot [flew outs pag ty aledtt . m 

-mototgese ent evotqels "to evotg oF Snometate esol titowg | , 
00.008 923 eee. PT re rE i oa dae. 
00.000 BPO ceerverdecseeewag @tOmoteng getqieset esd 

00,.065,$ OO.0bS.8 sicdesepas e4w desodeunev ep eane wees sammamen ry 











00.088 .£ 00.081 ,8 Jeecdhe O00 ees 00ghenee She he eseeeea Eee 5 . 
- 00,981 6o,.Sis his bwecgbiesrenceessesensee sau egeepeune xood 
00.86 00.08 rpeteenvrevee® ereece ven gt@QeEtoe seven: motesd 
00,885 s-wieeih kee Gee ge eotse somwooos) teorssal 


: eee te eanvr ee rr ey fo #4) moteetamod 
00 .,.000,$ ee ee vne een ee eee eeeoress ~ + + ¢ 9EMSgxs eorttto 
600,000 ,Sf 00. 600 ,O& Pe ee Peres * ove ge QOOmevns viatrenuood 
60,.C00,0S  06,000,3£ pesvecscvcsqgaadnomgiae Fanisgs 2e9n8TqG3900A 


00.0991 


Be toatert ,8T83 ,viub :edideb nogbel eelea Favooos to eteyiana ean 
es LOb. ,sestado. caved modeva 70%) ,eegterio Xo0b 7088,f8 
ee Be 


PROBLEM NO. 149. 149 
(N.Y. C.P.A, Examination) 


X of New York is the purchasing agent of Y. a South American 
trader, who pays X a commission of 5% on all transactions execuit:. 
ec. X executes his orders, draws a draft on Y for the amount in-- 
volved and discounts the draft with a New York bank, which pays 
the debts created by the purchase. The bank forwards the draft 
Orv” 2Or collection. 


¥Y orders through X 100 barrels of flour, purchased of A, B & 
C,@ $10.40 per barrel; freight paid $92, cartage paid $38, 
insurence etc. $18. He orders also through X miscellaneous goods 
purchased of D, E & F. amounting to $7,500; freight paid $72, 
cartage paid $32, insurance $20. xX draws a 60 day draft in favor 
of the bank for the amount due, which was discounted at 1%. 


Create ledger accounts to express correctly the above trans- 
action. The insurance is covered under a floating policy. Fur- 
-nish a trial balance of the ledger. 


Ref. 46—~6. 
PROBLEM NO. 150. 
(N.Y. C.P.A. Examination) 


By the terms of an agreement entered into between an export 
agent and a manufacturing company, the agent was to reimburse the 
company for the value of any of the company's product destroyed 
through causes over which the company had no control. On December 
1, 1911, the storehouse containing ail the company's product was 
mysteriously destroyed and in accordance with the contract the 
company submitted its estimate of the a mount due by the agent as 
917,659.05. The agent wished to verify this and obtained the 
following data from the company's books: 


Commissions, debit balances, $2,925.03; insurance $588.69; in- 
interest, debit balance, S939; interim dividend $4,794; inventory, 
January 1, 1911, $4,705.86; labor productive $58,498.74; legal 
expense $ 52,50; net profits, December 1, 1911, $13,358.73: pur- 
chases $166,247.46; repairs bag; sales $245,064.12; sundry factory 
expenses $9,605.76; surplus, December 1, 1911, $8,564.73; telephone 
2b 
“1,248.18, 


Prepare a statement showing the ‘value of the company's pro- 
cuct on hand, December 1, 1911. 


Ref. 51-6, 
164 














: 5 7 Fe io an | rr 
‘eh | Lear .0u MaIGOAT Me aan Ves” 
(moitsaimsxe .A.d.9 A a Sap 


aeotvemA dtwoe s .Y to tn6ge anieaadtomg sng ef mac 
tysexe adottosensit {fs mo &8 to aoteetmmos ® X Byac 
at tauoma off 102 Y mo Fist s eweth ,etehte ef: eB9cn 

eveq dotdw ined XroY well s a¢iw Stet ent etmuooeth 

tints eft efbrawrot amed eff ,sesdomg ye 


































$a .A Yo beestowg ,twolt to eletisd OOL X dgvotdt erebto Yo 
“at? brag ogsdxso SCG bieq tigtet? ;Lemted tq ob.0f¢7 @,.9 © 

‘shoos esoonelflesetm X dgvotte oats exebto eH .6f3 .o¢e sorsiveni 
| <S0% bisq digistt ;008,¥G of gaitavoms 2392 ,d to a: ae 
fovet ni #Iiath ysb 08 8 ew X .08* sonswent .S&G bisq eustis9 
(Rt ¢s betauoneth sew dotdw ,euh tavome erly TOT unsd oft to 


-vaatt ovods ond yltsentog sestqxe oF etnuodos tegbel staevD a 
et .yotloq. gmitaolt s tebav Sotoves et eonemrent off .oftos 
ie ll | .toahel eft to sonafad Leia stele 


PO cc 4888 . 208 


Oar .ou maaod4 
(mottantmax® .A.d.9 .¥.4) 


frogxe as aoowted otnt heyeine Iacmeertgs G8 to eatet od YA 

ant sawdmiot of saw Inegs One ,Vaaeqmoo axtwdsstunem 6 boa tnegs — 

bevortesS touhorg e'yneqmos et To yne To eufiev ot wasqmMoD — 
asdmooet a0 forties om bad yaeqmoo ent doit sevo eoeres dgvowls 
eaw touhord e'ynsqmos edt fies gatatstnos sevorietote eS «ft er tf 
ait toctines ert déiw somadtesos at brie bevyotsesd ylexolieteym 
as tnegs oft yd ow tuvom 8 odd %o etanttes ett bots indrye ynaqnos 
ad? hertedde baa efdt vttiov of berletw taegs sat 220,080,002 
sexood etyaaqnoo edd mort eteb twoltot a 


. - 7 iz i. 
Ly 









<Ytosneval DOT S23 Soebivis mite ok ¢ 49One 4 testotnt ' 
faael :$%,.80),88¢ evitowbomg todal ;08.30¥ Visunst 


; ‘eo 8 ek 
«tq :8N,808,¢f5 ,[f£eL .f radnesed yed1t07g #08 _Seaeqxo 
yiovost yrbeue ~8£.530;8586 selse ,;GR¢ eitaqest pad. SS,30L5 eoesdo — 
enocigales ,6%.506.8) fier .f redmesed eeutquve 787.208 ,.0% 
: : ) 






8.828 


-oig e'ynaqmoo sit to oxlsav ett ry rik rons 
|  ff8L .f a8 





PROBLEM NO. 151. 


(N.Y.°CiPiA. Examination) 


Albert River, real estate agent, submits his accounts, which 
are fully acjusted and ready to close, for examination and 


audit. 


TRIAL BALANCE, DECEMBER 31, 1916 
eC CREPE re too one Are cee SaaS 


TSMOUULS pee ak@obehbee cus gests so as . 4 + eae 1,856 
ROCIUCO Torus sees ee be eet ceeess = 28 54a dies 
UWherSs fOr Oro ver uy COLO pert spies sa pe 
CLlLONnGS .Gr Peru gaveeivevecc ves s errs 
TESQe COCs Uae ess see e keer eae ks saab ss 6 . 
PEGE s pe ces tract besens anne ayes Ter errr 
COMMLESLGUSS ceatek ata entareacen tt pies t® 
PLGUOUMNGi see reeeees eee Rad nacegsce Sense eas 
EROS A sane as ss PO te FES cies fakes ges . 2,000 
Lav Geo peas wh bane es > a <4 mata Ore GS a a ee 8 ene 4,000 
OP eee feel Ce age teas tea cas gst aces 4 500 
CeCe see a gece = se 6 ace 9 5 885 ee mee ee ak ° 


Investments in unimproved real estate 
Lop pote 3g ply tte eel ere PS Pbk OER Pee eres ek 30,708 


$62,392 


13,818.00 
31,220.00 
250.00 
6,237.84 
360.00 


3,294,16 


$62,392.00 


Furnish a statement showing River's financial relations and 
status, with brief comments as the accountant. 


Ref, 44-1, 


164 


oat far 20 MaISOnt 
(rot tanimaxd AcTeDd sVell) 5 


dobriw .atmuo0oos ete atimdve |,t1938 atases {sot «revit trod LA 


bas cotianimexs yo. ,eeofo oF yhseet bas Soteul 5s yifut 9 ta 
Sie : etihus 


’ 


arek fo AaaMaoOsS ~OMATAG IALHT 


BSE. e3G co ccle sida alles «Gls Sites die staeinients amen 


acs .f ee eee a du bats dies 4 ceneude OgmremEEE 
00, 3¢8,f Pe ee Ee cect Jedubjonctis BauiooA a 
00,3¢c2,.4 oe asdonn ane caeeree ysis got "ot at WS 
00.818,é1 | nn ka edn ties REA CEERES. TOR edaellod. 
00,088 ,f£¢ ee Da as 20a bad OF 20898 ehe rT 
00,028 oo ec SR REEA s 0 hee Cun Veneewa eon 
£8.92S,.9 . OTT SA a dicke 4 0elhinen Oetnd Ratan: 
00, 05€ oto AL Vie ceecenenenetannt cee 

000,S ed Rea ha ls dPed «ota eememen 

OOO, en wee t's de sign nk een ear 

‘008 ORE Ce ae eo ttI0 

ar, SeS,2 oe iabnwa a tue h nares einen mee 


sindes {sex bevowgeion at etnomteovel 
BOT. Of : ous thie a gee ee ee . (Lenoeteg) 


a tenet et ae LRT Ae 

00.982 80g Ses Sa¢ 
ore - 7 

ee eee 


foe snottalor Istonanlt a'tavin gntwode ¢nemetace 8 detect 
wtasdnwongr of ea aditonmioo %oivd adiw ,ausiase 


ofedd 988 
. pot is 





PROBLEM NO. 152. 151 
(N.Y. C.P.A. Examination) 


James Brown is a real estate broker and agent who, among 
other things, manages properties in consideration of commissions 
ranging from 35 to 5% on rent collections. For the last two years 
his books have been kept in haphazard fashion and in violation of 
the Law of Agency. They are incomplete as to footings and poste 
ings; no trial balance of the general ledger has been obtained 
and no recolciliation of bank balances has been established dur- 
ing the above mentioned period, The Tenants!’ Rent Book is a 
species of "Dickler" in which the current rent charges are enter- 
ed in pencil anc inked in when paid; the names of the tenants 
of properties under lease are also entered in pencil and erased 
when the tenants move, the néw names being entered in the places 
thus left vacant. 

Having accidentually discovered irregularities in the - 
tenant's book, James Brown has discharged his bookkeeper-cashier 
and engaged an accountant to conduct an examination of his books, 
records and accounts, to discover the extent of the shortage,which 
he fears is considerable, and to install a new system of accounts. 

After spending considerable time in an attempt to place the 
books on an accounting basis, the accountant finally obtains the 
following trial balance of the ledger, as of September 30, 1919, 
installs a new system which will permit his client to fulfi aL his 
accounting duty as an agent and renders a preliminary repert 
accompaniec by a statement showing clearly the financial status 
of the relations of James Brown to his principals: 


TRIAL BALANCE 


eA Ag Caer eras cere ® ,. 000.20 James Brown. capital,. & 4,360.40 
mente CASRe g++ ae ewes 100.00 ..COmmMIiSSLONS pasncscccce eog0L0.00 
The Augusta Terrace) £15.00 Phoenix, Ins. Company,. 470.00 
The Victoria Court,)(a) 805.00 London Ins..Company,.. 450.10 
The St Quentin Court ) The Frederic Apart- 

COUTG assesses a a | 650.00 MON pet 0 6 6 6 am 'sie's ) osu ee 
The Audubon Court,.) 270.00 The Venetian Court,..)(f) 2,500.00 
The Even'g cola 75.00 The. Franklin Castile,.) geo eVO 
The Morning News,..) 2Os00 | So Vara Fal), ses ses ) 2,050.70 
The Union Wall (b) Worl. oe ae F 77550,00) 

Paper, Company, -- :) ta ye0 
The Janitors’ 

Supplies Compang, ) 45,25 
Insurance account (c) 920.10 


JAS « Brown 


Graw'sa, (d)iseeese 16,950.00 


Cash shortage (€),.e. 380.00 
‘SROAYTOR seuaseecenee Ley l4G.00 
Office GXpensGs, ..ese 0,130.00 
Furniture and equip- 


MONT, sesvetesececs 4,150.75 


$40,307.50 $40,307.50 
Serer ni Tes er ae 


ek ist | eh id 
” ie - ‘ 
: Madey oe 
° i Be 
Pamats. ¢ 

lhe 
\ 


ter 


wy prone: ore tr 
 ettolegiamoos to mols 


- Bts9y ows 







ie ee Wn 7* if 1 «4 
} nt Po : ey ib Uh 2 Bue " 7 
) SS . PP ee a 
; Wyo ee oe 


esol «OU samen 
, AY 
(aott se hasxt Aye i) tah 


ntserebtenoo at coltiegotg . 


teal add 0% 


=teod Sia egnitoot of es otsiqmoont ete yor? 


hontatdo meod ast isabel Lavene 
. ots berleltidates 


8 el 


stots ers 
; etnanet ont 


need gar Pree 
food too 'etasneT sa? 


29On THD 
to semer edt 


ae rexfortd etetas inet a st aw 


Leaotsoelioo tae mo Re 
to potitsiolv mi base aotrciest Stesadgen ar dood ased evar axood ete 


eft to eonsisd fetid om 72 ie 
xned to mottelltolooes on : 
sHotie¢ benottaem eveds ont aot 

jnov tnetive ent dotdw at "“s<elvoltt to estooge. 
py btsq: gorw at bevrt Sona ftoneq at be 









of 2S mort sataaet 
—s Yorena ‘to wal odt 


boes ts hrs ftoneq nt bervetae oele ers Seeal tebar seltueqo rg bet 2 


eooale ont 


ads ot coitiia lager bereveoe £5 vi faudnebtoos gaivsl ; 
‘Hood. ald Segnvaoe lb ean awond come .wood e! 'sasnet 
to noltsaimaxe- ae g9ebnoo ot dnetmuoogn as begsgns das 

es to tuetxe ods tevoceiS o¢ ,etnuooos bas aebiooet 
ve wan s Listegk of , bas eiderebternos et atset of 


eet 
Ah Nea 


= ~e Eri 


, exo od eto 


foic Wy 8° pq to J* 


estaba £ 


alt a 
eit eosic 


ort 
genet 


ein 


eutata 


00.0£8 88 
00 .O0TD 
OL Odd 


2 


' Of ,.2 888 er 


| 00.002,5 
OY.0c8,.$ 
00.0¢e2,f 





2 


ented 
2 Oe 
Lit tia 


— | f. 
fl Os 


paar ‘e] jOIN 
OE 

to peti 
ot de 
tdo yf! 


rye eaetrrc 


411 sot 


wu 


e ne mt @mid efdevebtenco 


s4ergP 
é np 
dae 


4% 


Put 


oF 


:aleqtoniag eid of mvowd eomat 


HOMAIAG JATAT 


~.fetigqso .wom@ eemst Of.06e 
ssnnheeeesgetonseamaeo 00,005 
» Ertaqiod ent aikweons. 0Ocei 
oo e UTBGMOD. «ent moheol O00O.c08 
efisgéA oitebest ef? «4 
SN ae od cee e eg SMOM 06.988 
eo.yre Stu oo aatteneV ett 00,06 
(. .efters aniiiiaca td ont  OOYCy 
(-ovevegilSh SESTRIAS Doles 
en ecivews tue a 4S | 
| OS,.fff 
ag, én 
Of .O8e 
00,068 .aL . 
00.0aL SL 
OO.0bL 


ay, Oef .p. arene essen ie 
BARS Wes, pula, ee Se AE 
hu 3, %0€ 7 Os : > A iw : ne ne u pe 
: pot a a hes Ye ne 4 ee 
i i 6 Med) a of ae. be Ay _ ab ih :’ 
th cine Ae 7 pe es i ae 


etre girted zomen wom ert eovom etauanet sit nodw 


fant? tustesrooos eft .elead gattawvoons a& md exlood 
io es _tegbel oft to sonsisd Letat antwolfot 
tfo eld dimteq [flv cotrw meteye von s ellLaternt 
troqet yranintie g se etebaet baa taone ma en you6 gatdawooos 
{etoneank? act yireels psalwone Inemeys 

























etasoav ttef eset 


gotsnoge toITA- 


te a yc betasqmoscon 
to eanottsfer ont to 


@ ciabtieedachs (otienta | 
veeveseoagnhaso YIIOT 
(sont1sT stengvA off 
8)(,t v0 ainotolV sat 
(3500 sitneud 22. off 
(av deed eum cae Seee 7: 
(.,3%wod aodubss oft 
(doteane!S g*aovd ont 
{+ <2wet gninrom oT - 
{Lev moianu oft 
Coes g¥rtaqnod , 19q64 
 fegetiast oT 

( .Mitsqmod estiqqne 
(9) tavooos sonsivenl — 
mwowd rae 

ee? cea’ web © 
Sowa) | onaitode dead 
poems 
eb ees  CRMOgKe goftt0 
eqivupe Ses emiiowt 


d) 


153, 


Notations by the accountant: 


{a) Remittances on account of collection of October rents,vaid 
in advance on signing lease, not as yet credited to 
principals. Settlements to be made on the 29th of every 
month . 


(pb) Balances represent payments from March to June 1919, for 
advertising, decorating and supplies, for the account of 
managed aaa Paid bills cannot be found; no cde- 
tail available; itemized receipted bills asked for by 
letter; no answer at September 30, 1919. 


(c) Premiums on fire insurance placed by agent for account of 
suncry clients not J haley Premiums will be paid to 
agent if risk is accept ec and he will deduct commissions 
of from 5 % to 15% from habe Vansbe with companies. 


(d) Probably contains charges which might property be capital- 
ized under caption Furniture and Fixtures if positive in- 
formation were available, 


(e) Entries made in cash book by accountant, for rent col- 
lections apocaring in monthly statements to principals 
but not appearing in cash book or in duplicate of bank 
deposits obtained from banks. 


(f} According to the terms of his employment the agent must 
remit on the fifth day in every month. 


Prepare the preliminary report and the statement submitted by 
the account to James Brown, as at September 30, 1919. 


Ref, 50«c, 


164 





















Rkida: etaoy secossO To anolsgoelloo ke desta mes: 
ee Bad 2DSt0 gay sa Jon eared al a4 seal eons? 
“yipve ‘to dz@S edt no ebam ad of adeeneissen 


ey ieee A a we 


‘aot g@i@i sant of dotam meal idoontint’ daaa ales: ‘Boe to 
no drusooos ors 102 ,ceiiqque Bm Log ibbtrired S eoagebeey 4 ai ests 
«8h om phavot od tomass alfid brad .estdreqotg beasnar ii ve Byer. 
yd nor potas elli¢d betqkesea bos tmed £ yolde{ieva {fet | cs 
ereLl ,OS ba gee Th sowans on pwottel  ielUh * 


"co ¢nyooos Tol tneg6 wt DOS: 1g) ae ati? 10 » mutant 0) oe iy 
ot Sisaq = fflye amyimett | i) oa tor sank yrsave oe 

eroteatmmos goubebh [ftw ed Bes Sotqeoos et welt ai 30902). 
: ~cokmaqnos Adiw tromaltses mott Ral of x & mor a nh A. 


-fattqss ed yireqota ely. ben dogeiw aegisio antsdroo 2 vigator (5) 


ant evidteog Tk eeusxt4t Soe eumtion notéqae soors 
 ,eltalievs etew aokd bdentod 











foo $a9t tot _snsdnyooos yo stood daso at e5rat eobrsnl oe ie 
efaqitoaiag ot atnemetase vidinom nit gmkwasegs ec ot 


Need to ots Shay ae at so food desas ar an rgiwseeqqse ton 3 rs er anh i 
| mined mort bontstdo adte fer whe ; 


tesm geoge ont saompoLame hap to emtet ond ot BrtbroooA mo ai 
 itaom pteve at ysb ATT et mo basal Mateos a 


petitmdve tnometete odd ans txoqox visabmb for ont eat eu 
Off 08 tedmedqe2 ts ea .wowt ror eomst ot Sarat A eo 


deog! 


bie 





van al be Fai) ees 
F [wa ve a | 
ae re) lie, 
pet ee 
ty pt A Gh A bs t 
; ; y oh 


aol 





wa 


FIDUCIARY ACCOUNTING 155 
PROBLEM NO. 153 
(N.Y. C.P.A. Examination) 


John Roe cies, bequeathing his entire property, after pay- 
ment of all debts and funeral expenses, to the following 
beneficiaries, viz, 1/5 to John Roe jr., 1/5 to George Roe, 

1/5 to William Roe, 3/10 to Mary Roe and 1/10 to Frank Doe. 


Tae inventory filed by his executors was as follows: stocks 
and bonds $100,000, bonds and mortgages $150,000, furniture and 
wearing apparel $1,500, cash in bank, $1,000. 


There are two executors and their transactions are as 
follows: Cash receipts: stocks and bonds sold $83,525.50, bonds 
and mortgages paid in $116,422.73, furniture and wearing apparel 
sold $1,247.28, dividends collected on stocks and bonds 
$45,422.50, interest collected on bonds and mortgages $62,527.87, 
interest received on deposits in bank $1,083.48, real estate sold 
$25,000, rents collected $18,000. 


Cash disbursements: funeral expenses $750, expenses of pro- 
bating will $5,0000, general legal services $10,000, rent of safe 
in safe deposit company $450, publishing citations $35.75, care of 
cemetery lot $400, repairs to real estate appurtenances $5,724.68, 
premium on executors' bond $1,250, stetionery, postage, etc. 
$125.38, accountant's services $2,000, debts of deceased 
$12,472.41, taxes $20,672.48, assessments for improvements to 
real estate $471.83, insurance $250, John Roe jr., account of 
legacy $55,000, George Roe, account of legacy $62,500, William 
Roe, account of legacy $55,500, Mary Roe, account of legacy 
$77,500, Frank Doe, account of legacy $24,000. 


he inventory at the date on which they wish to account is 
as follows: stocks and bonds $25,000, bonds and mortgages $32,000, 
cash in bank 420,126.83. 


Required, to make up the summary statement of the executors’ 
accounts, separating princival and income, and showing the balance 
due each legatee and the amount of the executors’ commissions. 


Ref. 5-4 
164 






(xoitvensmex® .A.T.9. a G) 


“8G tetris titeqote eritae mic guidtseuped 29 eof sicko | 
on kwollot anit of ,a9ameqxe Ietenul bas ad 2 tis to inom 

90H entoed oF E\L «et of aofot oF ONS 0 iv ,eefist itensc. 
soon mesliiW of ©. 










°. 










.900 Amervt of OL\L Saw O08 yrslt of oL\S 


| ; 
ra 








ont 


| adoote :avolfot es saw atotuoexs aid yd betzt yt wevnk ot Bi 
| ,O0L3 ebmod brs 


bus e1vttoiw?t .000,08L@ segegdrom bus abmod <0 
-000,1f¢ ,amed at caso 4 





es ets anotforanstd thedt bas erotuoexe ows 91s etenT 

abnod ,08.8€S8, 588 Bloe ednod bac exoota :atgqieoet das :ewollot 

farsceqs aniztsew bae otuttatwt .6¢.SSa,dL1¢ ai bieq monet bas 

. Botied bas exoote mo betosifoo abmebivib ,88.V3S,1) bloa 

.  4%8.9S8,Sa% esgantrom brs shaod mo betosilos teetedat ,0@.«SSb,¢. | 
- loa states Iset .32.830,1% wnad wi adtezogebh mo bevieoet teorstat 

| | 000,81% betosiion atmez ,000,eS¢ 


-otg to @oancsaxe ,O@V) eeaneqxe Iatenut :etnemeatudelb daso 
Sts to Inet g900 .Of, @eoivrea fsgel letenes 0000 .8¢ iliw | issd 


to szao ,é0.8d3 


.t% feraq¢s anitsew ‘hae 


anoisstio satderidug ,0@a¢ yasqmoo siaogeh etse ak on 


.99.)89,a4 eeonsnetiwqqs efatee Isdt of etiscet ,00b% tol yretemso 


heessoeh to etdeb ,000,S¢é aeoivise e'tnatnyooos 86.08 
of atnomevotems tot etmempacags .8S.S°8,0SG sexed 4LdsSVa.Sl 
to davooos .. th eof melol 088% eonstuant .66.19ag esstee Isot 

msitiiW ,00a,8d% vosjel to tayoons .@0f eyroeD ,000,c6% yosgel 
yosast Yo tayooos ,90f ytall .008,6é$ yosgel to tmyoo0s , 90h 
«000,888 yosgel to tnwooes ,90d amex ,00e, TN 


re 


.ats ,exsteoy .ytemoktete ,0@8,18 baod 'stotuoexs a. «88.0814 


at tnycoos of deaiw vert doldw no oteb end? 28 viogaevai ost . 
,000,S52 segnnttom bas abnod ,000,é89 esimod bne @loose ‘s:awollot es 
i a | .08.985,0S8 umed af deso 


‘arotusexe eft to taometats yranmma elt qu otam of ,betiupel 


sonsisd sit aniwode Sas ,emoong bas Lectoniig guidstsqsa .etmuoo0B 


.ancteaimnos ‘atotuesxs sat to tavoms edt bas setagel dose oud 


bed tet 
bot 7 Ni 





PROBLEM NO. 154 ci 


ul 
Ss 


(N.Y. C.P.A. Examinetion) 


A trust estate, the funds remaining for division amounting 
tc $225,000, is to be divided as of January 1, 1900. The benefici- 
aries were to share in the whole estate as follows: A two fifths, 
B one tenth, C two fifths and D one tenth. A was paid December 
31, 1898, $10,000 and January 30, 1899, $5,000. C was paid 
December 51, 1897, $15,000. B and D were each paid January 30, 
1898, $10,000. Prepare in correct form a statement showing the 
division of the remaining funds calculating interest at 5%. 


Ref. 7-3 
PROBIEM NO. 155 
(W.¥. C.P.A. Examination) 


The will of William Christy »ovovided for a division of his 
estate into three equal parts, of which one vart was to be paid 
in cash to John Christy and one vart to James Christy, and one 
part was to be held in trust for the benefit of Thomas Christy, 
who was to receive the income therefrom. January 1, 1901, the 
executors had $100,000 cash in bank, revresenting the amount 
realized froin the bulk of the testator's estate. 


The executors paid to John and James Christy $30,000 each, 
and Lent $20,000 on a real estate mortgage at 6% interest. Pre- 
pare necessary ledger accounts for the books of the executors. 


Ref. 10-3 
164 


























eer: | | ner ott 2 
| (note so tm ae y 


. “gr itevoms go tezvih sot note ramet ‘pba? 6. 
skoitanod gHT .O0CL .« f yxsunet to as bedivt 
_ yacttit ows A ae as eteieo Leet yee 
xedmoved bing saw A .citaed emo as 
bisq aaw 0 +000.89 «@@dt ,0G ¥e 
fs gOS ~isunet hbisq dose eTew a bas 2 
' dt anbroda tnoemetsia & 10% set de ak ots 
ae 38 segtatme sii a Si ane comet 


eee Ott } uereomt 
(ao f8 arcs ra bee er yes ae Same 


eid to aaekn s tot bohivoce. vita tial used iriw — “thee ont 
bise ed of ast TIaq Smo fo key To .edtse iaup9. eet. osnt want 
Bio has ,ytaiztsd semst oF tuse ono Os xdakxaio nrfot of reso nr 


“te tut asmoi? to titened eat sod Faurt “nt biol ad of sew tzag A 
add evisoat oft esw ow a 





‘ort ,f0CL .f vrawrat smorrete at emoaet. se 
”tanoms one sxigneoatest gained at. eso g00, C019 bed atodso ha 
: sai ,atsias a! otataod, and te aliud 90h wort seat a 

i) 


,fose 000.047 vis brad. eomet bes eto. od Bisa etoduoexe ect a : 
-s1% .teoretat RO 28 eysar tom gtsates {set 5 me “000 ,0S¢ tn feel Sra a> 
-atotupexa arid ‘Lo Blood. eal ‘il at nuooos abt row 8 


i oF * 
j A , ie a! Na | 


i ~ 
f ne { ee 4 i f ; 7 fh 
Di ' 1 5 1 ; 7 " F wh | me 6 
| ‘nat | les MRS i 
P?) 5 er A Wil | ee 
oe Ws i MO oe eee i 
I i yy. i: Ty i . r 7 y A 7 c 


Y 2. aye k P| iis, a de re ‘i | 
4: ; " bo rs) | fey? SiS _, oe joa pit ih o ea 
ii (Aoi es we : hake os ibe! , ead i v 
; rae: BL j y % = ai se nth : ' rend 5 1%! 
a. ae ot a ™ } pars Mg er Ad.’ nu th v 





‘ ic i ; ‘ Fh ‘af , vietigst i 1 "he ti 1 





P PROBLEM NO. 156— 155 
(N.Y. C.P.A. Examination) 


By the will of Henry Falmer, deceased, specific bequests 
were made to three of his children, viz: William $100,000, 
Mary $75,000, and Emma $75,000. A sum of $20,000 was bequeathed 
to charitable institutions and his eldest son, Henry, was named 
as residuary legatee. In accordance with the tems of the will 
ali real estate was sold, the amount realized being $75,000. The 
inventory filed by John Jacobs, executor, was as follows: bonds 
and stocks $87,500, bonds secured by mortgages $135,000, furniture 
and other household effects $2,750, cash in bank $1,237.60. 


On an accounting the executor's books showed disbursements 
as follows: undertaker's bill and other funeral expenses $675; 
probate of will, legal expenses, publishing citations, etc. 
$14,278.75; debts of testator $10,875.25; stationery, postage, 
etc. $118.75; improvements on real estate $750.50; repairs on 
real estate $4,860.75; taxes and insurance $17,505; care of 
cemetery lot $350; services of accountant $1,800; cost of 
executor's bond $1,400. Receipts were as follows: sale of bonds 
and stocks $86,327; bonds and mortgages paid $98,915; sale of 
furniture etc. $2,285.75; interest on bonds and mortgages 
$61,270.50; interest on deposits with trust companies $1,275.45; 
rents $17,250; dividends on bonds and stocks $37,918.50. 


The inventory at the date of accounting showed bonds and 
stocks $15,755, bonds and mortgages $30,375, and cash in accordance 
with the foregoing transactions, including satisfaction of the 
specific bequests of the will. 


Prepare, with due distinction as to principal and income, 4 
summary statement of the executor's account, showing the amount of 
the executor's commission and the amount due the residuary legatee. 


Ref. 13-4 
164 































uae pax om mateiRT 
(noiterioss®’.A.T.9 


ataguped sit tooge \p9a8so9b stemisd ytaoH | 
(000, 00L£8 meiisiv :siv ,fotbiide ein To 
hentssupesd ssw 000,.0SG to mwa A .000,8%@ . ba 
bomen acw ,YineH .toe taehle eid bas Lot ade! ey 7 
Iiliw edt to emret ont At oF soasbroo0s mr % 
‘ed? .000,8T4 gnited besiiset tavoma edt bien 
ebrod tawolfot es saw ,todwoene ,edoost nfo ¥ ig SHOVEL 
@tutierivt ,000,d61¢ aegeatiom yd batuoes abmod . oe bas. 
f -08.VES,1¢ uned ai Meso ,0ET.Se etostte Btodaawoa See: bas ¥ 


atnensatude Lb Seswode alood a rogvooxe add gaivi 
evade asanesqxe Istenut wedto bas [lid @"9 
o39 .enolsesto quidet iiue ,seaneqxe el ,iLiw to ets 
292 steog vtantoiteta ;@%.898,0L% xotatee? to etdeb Rb owids | | 
no ariaqer ;0¢.080@ e¥etes Iset ao aigemevotgas ;89.611% .ofe 
to erss ,@0@,. "18 eomerwani Sae esxst ;81.088,6¢ ststae isot 
to tees 7,008,1% Puetedoooe to gsotytee ;06S$ tol yretemes 
abnod to sfse sawoilor as stew ataqtesel 008, 18 baod e'totusexs 
to ofse 7a@f@,802 bisq eagsadiom bas abmod ;TSE,833 exoota brs. 
6 ges Ton has ebrod mo feexotnt ;é°.08S,.S8 ote otus socet 
;Gh.aTS, 13 ae Lasgaros teitd dtiv atiteogss ae tastetal ,0¢.09 Tart 
-O@.8F0, '6@ axsota ane abmod mo abaedivis 7063 TL 


| bas eSaod bower gq itwo998 to sf#sb ent ts ytotaevat <a. ‘ 
sonshtess6 ni reso bas Love ,086 esgaatiom bas ebmod ,céT.dle aloote ae 
ont to mottosteiisa ge thu foot <enoidoseaeit gatogetot ent diiw 
ii tw eit to ateeuped: sapere ) 


& .emoont bee Jeqtonixrg of ao notton at aad eub st by sorsgort bas i 
to tnuong ont gabvrone .tmuosos s'1totuoexe edd to snemesas3 © ; 
-993suel yrsubies: ed? eub Javon Sil? 518 mos ea lanioe ei saselene auld a 


“My 








au 





PROBLEM NO. 157 156 
(Woe C.P.A. Exami nation) 


John Doe died Jan. 15, 1901, leaving a small estate, and in 
his will made Richard Roe his executor. This will provided that 
@ legacy of 35,000 should be paid to Mary Doe, sister to the 

bearales. and that the residuary estate should go to testator's 
fe and two daughters, share and share alike. 


The estate consisted of the following: 
Casi in the Sime ae G7 Mee Baril... se ss ws ae Paes ss S46. 50 


One month's salary (due the testator from his employer), 250.00 
LO Union Pacific Railroad Company's first mortgage 5% 


EGLO ORC" For a £000 SCN «enc t aes anes © ae ee oe ee ee ear, OOO. OO 
One Tirst income dond, Central Raiircad of Georgia,.-. 1,000.00 
Demand no te oT. John Smith, eseees ee en ee ee er ee eee ee ee =e @ 4 100.00 


At his death, the testator owed two months' rent $50, 
Acker, Merrill & Condit, household supplies “81.50. 


The appraiser appointed by the surrogate inventoried all 
securities and accounts due the estate at their face value. 


The executor received $348.50 from the Dime Savings Bank, 
with $14.25 interest. He sold the Union Pacific bonds at 102 and 
two months’ interest, the Central of Georgia income bond for 
$875 flat, and paid M.J. Senior, undertaker, $541 for funeral 
experses, Arnolc, Constable & Co. $185 for mourning apparel of 
widow @nd children. He also paid for legal and other expenses 
incidentai to the probating of the will, $125. John Smith was 
pankrupt, and his note proved to be worthless. The executor 
ceducted his commission and distributed the funds of the estate 
according to the terms of the will. 


From the above statement of facts prepare (a) the executor's 
inventory of the estete, (b) the executor's summary statement and 
schedules for presentation to the surrogate's court in final 
accounting, (c) a statement of the amount of commissions to which 
the executor wes entitled, (dad) a statement of the amount paid 
to each beneficiary. 


Ref. 14-3 
164 










Peony ng  9eL .OM MELEORE 
(co idee: ins %E Ao ToD «Moll, yy, 









mt bee .ststeao L{Ieme £ ariveef ,fO@L ,.ef .met? 
fact bebivorg ifiw atdT <todeoexs aid 908 &tH6 
ait of todeta ,90d yrs of bisq od biveda © 
a'xogstaed of op Sivoda states yreubis 
|  ,.oitis etede base ots 















:griwolfot es to Setatenco status edt 
: i j a f ware > ie ie + gh i oe fol he 7 

aT See ohcae oon bee One emig edt at desd 

00.085 .{(rovofqme era movi totstast edt 

;. Pe egagsrom devi 

") @0.000,0L e..44. | 





nt *es e¢erkh ee ® 
g0.000,f «..,8igtosd To 


0.00! Tien eee 


{etemut toi 158@ ,reve¢rebay ,«toined tell biaq Sad tals 6TSs A 
to fereqcs grtetuom tot €8L8 .09 & efdstenod SEC Te nye oe er 
noanegxe tento bas Legel tot Sisq cele sH .metotico ons | se os 
aew dtim@ afot .aSL6 .iftw edt to guitsdotq ed of faetnedsiomt a 
<oguooxe oft .eeelditow ed ot bevotg eton eid bua ,tquitnsd 
eftatas off to abavt edt bedudktteib bas mofeaimmoo aid betoubs2 
,iikw edt to eurres ofS ot gariptooos _ 


e'to¢uosxe ent (#) etaqetq efosi to tnacetets aevods anf mort a a ae 
bas taemetsis yrsauve e'rotuoexe edt (d) ,otaitse ae Se yrotaevat 
tenit nt ¢twoo efatazortve edd oF molteinesetg ot agiubstioe 
fotdw of snoiegimmoo to tavoas end To tnemetasa & Ay ao idasooos. : 
bisa tavoms oft Yo Inemetsia & (6) ,bdeiftitne ascw aiesek gyoexs out. 
| aa a? ,vistokiemed sose of 
Gal ten is ' 


al 
1h 






yt eo 





157 
PROBLEM NO. 158 


(N.Y. C.P.A. Examination) 


A.B. died January 17, 1902, leaving a will appointing 
three executors. The testator's personal estate consisted of 
svocks, bonds etc., appraised at $500,000, rents accrued but 
unpaid $750 and dividends declared but unpaid $3,000. During the 
acministration sundry stocks, bonds, etc. were sold showing an 
inerease over appraised value of $10,000. Real estate was sold 
for $60,000 and the rents, dividends and interest accrving 
Subsequent to date of death amounted to $76,000. The executors 
during the administration paid for probate of will and issue of 
letters $150, funeral expenses $750, mourning $500, monument 
$1,500, sundry debts and claims $25,000, clerk hire %1,200, 
counsel fees $2,500, personal tax on estate #500, advertising 
and expenses of selling real estate $900, fire insurance $250, 
taxes accrued at death $300, subsequent taxes $600, assessments 
$400, repairs etc. $1,200, special legacy $5,000; also advances 
to legatees from capital $80,000, from income $65,000 and trusts 
set up $300,000. 


It is the purpose of the executors to render an account of 
their proceedings at this oresent date. They have invested in 
bonds and mortgages $50,000; sundry stocks, bonds etc. on hand 
at testator's death and still unsold are appraised $100,000 and 
there is cash on hand $14,000. 


From the above statement prepare a summary of account, dis- 
tinguishing as to principal and income and showing balance on 
hand for distribution and the amount of commission due the 
executors. 


Ref. L7-2 
164 








’ y al 

‘" > ae, 4 

Pe a RAE: 

rome =ha 8) hab Wf 
} a noe ay { 
; ot ay ~ 
er ot ‘ % : 
vas mn Plate 
Si totes Ber .OW METaOAT eee 


ent aatued .000,68 bisqay tad beseloeb abnebivid SAS Vole 
ne ariwode Sfos stew .ote ,ebmed ,aioota YrhANs Go. aininos 
bios asw efsise Ise .000,01§ to exuisy boatetqas 
artsyoos teesstat bas ebwebivio ,ataet ed? bas 
erotusexs off .000,0°4 of hedawoms dieed to eth of Fmoup: 
So ougel bas fiiw to etedetq tet bisq mo ftarfeininbs add an itd 
yrasmron , 008% aninrvom ,0€TG@ asanogxe isrenut 0CLG atetiol 
"008,i% etis frefo ,000,88¢ amislo bus esdeb me 008.2 
atiaisievhbs ,000¢ stetee ao xat Isnceteq 008,83 aeet Leanvoo 
occe gorei yank ettt ,00C% egates fest gniiios to aganeexe Sus 
ainamasoaes ,COad aexet taeupeedve ,0OS¢ diseb $8 Sout00s aoxst 







asonevhs oats 7000,0@ voasnel Isiosce 008,18 -oto etisqet O0SG 7 


atsuts bas 000,88% emoont most .000,08@ Latiqse mort asetsgel of 
e .000, 0088 qu toe 


to tayvooos m& tebaet of atetyoexs ont to stoqiuq ot a Pa 
ti bateavet sved yer? .etsb tnesotc eins Ja peter ig oe tisdd 


hasd no .2t6 abaod ,edoote wa ;000,08§ segeat1om | e 
bee 000 ,00f8 boatetaqe sta bfoans {fide bas dtaes e'ioseseaet 38 


.000, B14 baad mo deseo at etodds 


~eib ,tuvooes to YTanmue & etaqetq Inemetata evods est mort ee 
so soneisd gniwosde boas emoomt bas Laqtoming oc 6a isla Luga ts 


ents sub molea iamoa ta tmvows arid 8 moidtuditta, . tot ‘f ; s } 


setasuoons 
S-Tf .ten 


e 


bot 





: S 
. AR whi’! 
; 7) mY 
ee me ah A 
oe ug j ; o a eee a 
eS oe es ees oF we 


PROBLEM NO, 159 


a) 
Nn 
CO 


(N.Y. C.P.A. Examination) 


Fredericka Ward dies leaving one daughter, Doris, and two 
Sons, Henry and Arthur, all of age, surviving her. Her will 
directs that arter the discharge of all just claims on her 
estate there shall be placed in trust for Fredericka Winter, the 
child of her deceased sister, $50,000, the income of which is 
to be used for the child's support by the guardian appointed 
under the trust, and the principal to be paid over to her when 
She becomes of age. The remainder of the estate is to be 
divided equally among the testator's three children. 


The estate consists of cash in a trust company $12,500, 
vonds and mortgages on real estate $250,000; registered municipal 
bonds $90,000, household furniture appraised at $20,130, horses 
and carriages appraised at $3,000, clothing appraised at $2,200, 
and jewelry appraised at $7,400. 


One of the aforesaid mortgages, $50,000 @ 5%, is in arrears 
of interest for one year, and foreclosure proceedings are 
commenced by the executor with the result that on an immediate 
Settlement the estate realizes the principal and the interest so 
in arrears and the trust fund is paid over to the guardian of 
Fredericka Winter. The February and August semiannual instal- 
ments of interest at 5% on the two remaining mortgages of $100,000 
each and the January and July interest on the registered 4% 
bonds are ail duly received, and the bonds are forthwith sold for 
$90,190. The executor then pays $30,000 to Doris, and $10,000 
each to Henry and Walter respectively, on account of their in- 
terests. Doris takes, as a part of her legacy, household 
furniture $5,000, clothing $900, and all the jewelry at the 
appraised valuation. Each of the sons take as part of his 
legacy one of the remaining bonds and mortgages. 


On the sale of the remaining effects the furniture realizes 
“15,000, the clothing $1,000, and the horses and carriages $3,200. 
There is also received from the trust company for interest on 
deposit, $350. The executor expended for probate $150, funeral 
600, monument $1,000, tax on personal estate $350, counsel 
fees $1,500, fire insurance $42 and sundry claims against the 
estate $7,201. The allowance for executor's fees was fixed by 
the will at $2,500. : 


Prepare a summary accounting showing the cash in hands of 
executor and the amount payable to each of the heirs. 


Ref. 19-5 
164 






; ate : mi J i ay cy 
ek \ = " ; 
? a SA hp on 
j ; . se" 
Bef eas ,om malaoat ‘ . 
(roitecimsx «Ast. 9 Be | 
ws Bes .eerod  Tatdgush en9 gaivset aeib brew sloivobot® 
fliw aH .ved geiviviue ,o98 to Lis , twits one —noH ,anoa 
ged no amisto taut fis to sgtaedoalh ont To us gent atoorih 
4d .aosntW sxoireberl tot teu1t mi beosiq ed Lista etedt o7672® 
ei dois to smoond oct ,000 08g xetate peassveh ted to bird 
hotatodgs meibravg oft yd srogqua @' Lido edt 10% beau od ov 


pedw tad of 19v0. bing ed 08 ieqioniiq old pue etauid edt zobav 
od of ef esate gay to webaiemet 34T 4.938 To sont | 
-qarbitdo eotdt a'togasesd edt prions ytiseupe bebiv to 


008, S12 yarsqmos gaunt 6 ak caso to atekeroo 9¢8089 gat 
sqiotnum botets fget - 900, 0€8@ etatae Leet no eeRerd rom HAS abnod — 
agerod ,CS1,08¢ 7s beeistaqs etutinivt bLlonearrod ,000,00% absod 
00S,8¢ 2s besiatgge anidtola ,000.5¢ 76 peaistqgs eegsittss das 

! ,002,.0e ts bos tata yrtews, bas 


cagette mi Ok at H 000,086 ,eegsart om bkeastots oft To 9nd i 
ath agnibesootg exveoloetot bas -ssoy oo tot sastotat to 
stothecmt na mo tad? Sivest gat co iv sosuooxe sit yd Beonomnos 
sa faetetnt ome bas faqioniza 9 gesifeot gtatae silt sn omeltsoe 
+o metbteuwg odd of tevo bieg ai bast taott ent Doe Steet Ts mt 
~fetartt fournsgiea tasgwA D206 yisuidel eat vtetniw afobrobett 
6,00f@ to egnendtom gsainisaet owt ond ao Ro ss gaotoetii To edited 
a heroteimat ent mo daotesnt yiut bas -yrsunet ont BAS 4989 

ot bloe Ativdtrot ete ebmod off bas paviecst yiub 1.8 eta sabrod 
100,05% bus yettod of 000,086 ayeq ass tosuoete oft 402L,008 
-ni tiodt to tauoogs mo .Ylevitooqae zetia! bas yineH oF Mose | 
blossavod ,yosyel text to Jisq & as , sores eit  sadeotos 

att te vaiowet, ont Lie baa .000% gridtolo .000,8% etuciaiwt 

sth to ¢taq es SAB7 Boe ent. to dost moitssisy beaistqgs — 
saonsgéiom bio ebnod gainismoet eit to emo yosget | 


aasilser otutiomwt edt asoo.ts aninisatos git to elise git a0 
108,00 esyseirtso base asetod ont Has ,000, f8 anintols. adt .Q00.éL2 
no tasratsal Tot YRBqrioS taury edd mort pevigoet coals af grect 
ferenut .0&f etadotq 107% habneqxe toswooKs oft 08S? gtiaoged | 

Teanuoo ,0884 edstee Isnoated no xed ,000, £3 toremnuom ,003¢ 

edt tenis3e amielo ythove bas 284 gonstvant gtit 4008 LO egot 
yd boxli aeaw g98t eftotuosxe tot sonawolis sat f08,%¢ otatao 
3 1008,S¢ ta {fiw oils 


to abused at dego edt gniwode gaisnuooos yremmue s otsqetl 
.etied ett to dose of gldsysq tnvoms oct. bas tTolNOOXS 


@-@fL «toh 
das : ' 
dep 
' mea 
apn We 





PROBLEM NO. 160 159 
(N.Y. C.P.A. Examination) 


A person dies, leaving a will disvosing of a personal es- 
tate that is valued by the avpraisers at $36,470. All but $209 
is disposed of by the executor, who realizes $32,131. This 
together with $2,187 of income received during the administration 
of the estate, constitutes the full sum to be eccounted for. 


The testamentary and funeral expenses amount to $512. 
Devts of the estate to the amount of $1,500 are presented and 
Satisfied. Zxpenses of $700, including trustee's commissions, 
are paid and the sum of $20,000 is divided among the heirs. 
Prepare in sustomary form a summary of the executor's accounting, 
end a cash account. 


Ref. 25-2 
PROBLEM NO. 161 
(N.Y. C.P.A. Examination) 


The trustees of an estate of $250,000 make the following 
investments and collect the income: 


PURCHASES 

Feb. 2- 100 shares D.Q. stock, par $100 each, at $109.50. 

Mar. 5. 106.2. bonds, maturing 1950, $1,000 each, 6% Jan. 1 and 
July 1, at $1,010 and accrued interest. 

Apr.10. Bond and mortgage for $5,000, maturing 1912; interest 5% 
AOS 2 ein Wore Ls 

Oct. 6. 10 S.P. bonds, maturing 1950, 31,000 each, 6% Jan. 1 and 
July 1, at $1,020 and accrued interest. 


: SALES 
Oct. 5. 100 shares of D.Q. stock par $100 each at $110. 


The D. &- stock pays quarterly dividends as follows: 


Bors 1, °1+1/4%; July 1, 1#1/2%::Oct. 1, 2%: "These divi- 
dends are received resnectively on April 3, July 5, and October 6. 


The interest on S.2. bonds is received July 2 and the 
interest on the bond and mortgage for 5 months and 20 days is 
received on the date due. 


On April 10 the trustees borrow from the bank °1,100 
on collateral note and repay the loan Oct. 10, with interest at 
6% per annum. 


Prepare cash account, principal and income accounts of 
each security, interest, and dividend account and trial balance 
as of Oct. 10. 


Ref. 25~4 164 


. m= 3 | ioe ; UL AP, PL se = VE a Ya. 
ihe URI TON oar «0m: | 
Wo A eee A 


~29 Isnoated 8 To snieocath ifiw ge 
GO8G tud ILA <OTS,85%¢ te ateaisiqaa ye: 

| Bint .f51,35% aosiinet ow ,tosugexe fe heoaeael 
fottsiseinimbs ait anit Sevieger pS . ‘ @ tate ro@aacs 
-to? batnyooos ad of mua 4fut oss ‘ tao. eat 





























— *Slée ot tavoms aseneqxe Leronit + he’ ig 
ns Sotnseeic ets 008,18 te play edt ot «6: 
e8Motvetmmoo a'estayrt 


g008F 20 
Orisa od? anoms beslemees Ss 00 (08 405 
ONltnwosos atrotysexs edt Yo vracnva 8 6 orret 4 


far ott Maraoaa . 
(no fem ies pAeleD Yap ers 


gniwo llc? elt eclen: 000 0888 "to atetes as to deisel ent ) 24) ' 
) Pcie oat vae.Loo ried esnoutaont 


-O2.00L% t8 . nose OLS Taq Sasole Ova 89 Ta ia OOf . fag .éot 
Sas { .nst RB ylose 000,18 ,0aed gnitussa ,shnod «9.5 OL | 
-Saetsing beuroos Pane OL0,.58 te «Lo yLlet 
he deeretmi scorer gr itatem 000.89 tet ezegtron bas 7 LOft0k 
mc -f .t90 bua I .tgA 
foe £ .neat Pa fose 000, re s0@CL an tnd sex .Shrxod “4.80, ; oe .t90 
teeretat BeutToos bas OS80,f¢ ts 3 oa a 
Aa “BSErAS 
OL L7 ts. dose “cod Taq to ote Le@ te neraita 00s “a 1400, 


Sawo lio’ 





i 83 Bdirtebived “Wtedteyp 2Y8g toota +? «@ 9aT 


*eivib suediT PS .f Ld46: RAN Lal wit Yul . sPo\rer ae qh aa 
‘G Tedoto0 bas .@ yf: ue sé Litga mo Vievitoscaot bevigoot ae bab 


efit bona ¢iut hoevisoer ai abr od “48 ao teervetat edt ue | 
ei eys5 3S bas entnom &@ tot 9g5gtt car bas brod adv ao testeta: a 
| | wis) otsb oie ao bevieser 7 


'@Or; rime ned ent “ott wotted aestaurs end OL Litca no | 
ts teoreds i Moiw (Of 6#50 ase er Yedot idl St om fetetelion no 

| ee Vine ey een 
-T0 Btaweoss omoond jne Lao tones ican ines! peadext oe 
soneisd Igiat Ons tavcoos ie at ne ategtern 





PROBLEM NO. 162 160 
(N.Y. C.P.A. Examination) 


Philip Jones, a citizen of New York State, died April l, 
1909, leaving @ will appointing four executors. The will was 
probated iiay i, 1909, showing the following bequests: 

'X, 1/3 share, B, 1/4 share, C, 5/12 of the entire estate 
after payment of funeral expenses, debts, etc., a specific 
bequest to the A. Hospital consisting of $20,000 and a partel 
of improved property valued at $50,000. 

The inventory filed by his executors was as follows: 5% 
mortgage for $40,000, interest payable semi-annually on June 30 
and Decemoer 31; 500 shares common stock of Industrial Company, 
par value #100, appraised @ 110; 50 5% first mortgage bvonds of 
A. Railway Company, par value $100, appraised @ 104, interest 
payable semi-annually on March 1 and September 1; accounts 
receivable valued at $20,000; cash in banks and on hend, $69,250; 
household furniture and effects appraised at #5,500. 

The executor's transactions were as follows: 


CASH RECHIPTS 


500 shares of Industrial stock sold @ $115 per share. 

45 first mortgage bonds sold July 1 @111 and accrued interest. 
Accounts collected $18,500 (balance worthless). 

6% dividené on Industrial stock declared May 1, 1909. 

Interest on bank balances $1,300, of which $400 accrued prior 
to vestator's death. - 

Interest on bonds and also on mortgage duly collected. 

Rents collected $4,000, of which $1,500 accrued prior to death 
of testator. 

The household furniture and effects were taken by X. at the 
eppraised valuation. 


CASH PAYMENTS 


WU PALS BO DOVEGE p46 ic ee et Vide aes a ve cider ee hs Po ies oA nlahaenhitte gO 
Expenses of probating will, .-ssescevevnsees celk Wea wana jhete 535 
General legal Services,...... VR re eee er ee See 1,000 
Rent of sare deposit Vaultyecrersvercaers Vere ee rere oo Re ee 50 
Care of cemetery lot, CtGeyyesesvecevnnnves bt deed Ce rer ae 500 
Premium on executors! bondsS,.«...+.--+ Pete aicevk led o-8le ws Ocare ea. 6 100 
Stationery, postage, etc,..... + eee ae ore waren ee ee ino 
GEOTS Of GECERECA, see eer eer vvosena a eee adver e Bietnoe ar viks ae o> le BGS 
ayy) eS A ee ae eee Se ae See. Ce ee 1,025 
X- on account of legacy,...... weecr ck re ee piaietaca cp «2, eae DOU 
C. on account of legacy,....... eee n) Lee Re eee fee 20,000 





ty | 


OOF: SOL .OM MEEEOAS 


(Kotteniusx® .AsteD ,¥.M) 


“i 
oe | 
+ 
ie 
tg 
; 1 
4 


























of [itqA Soibh ,otst2 A10Y well to aesitio 
asw ifiw ed? ,atotuoexe tuot gaitniodqs 
| se@saeuped guiwollel edt gaiwocla ,e 
Sista9 etitne ont to SL\8 9 ,etede A\l a 
otiioeqe c ,.o39 .atdeh ,seaneqxe Later 
fes1sq s Sn& 000,088 To 


SP TGogA HRAD 


-otsla req 6118 9 bloa Aoote Isitteubal to aeteda 008 i 
sTsovetnt bewtoos bas L119 £ yin% bloa abnod epertiom tarit da Airy 
; -(2aelatiow gonsied) 008.8f$ betoelloo atawoooA 

*SOCL «tl Nell botelseb ioote Iaittevbal mo Saebivib [000 

toleqg hevtoos OObG doidw to .00&,f8 aeons lad aned ao taaretal 
iy 7 Mise a'qotetass of 
| ehetoolfloo yviub te pe mo o@is das abnod mo teotetal 
disen of toluq besrons 066,5° dotsw to ,000, 32% Setoslioa staeh 
| | | stotstacs to | 
sit ta -X yd asist ovew etoetts bus sindiniyt blodeevod aft 

et ; molitsulsy beetargqs — 


ST TEUYAL Wes 





000 , 23 * ** ees THe eee ede ewer es eeerns os ¢BORNOIKS datenu’d 

esc "eee e ee esee eer ssa este npeeeme og Li dW Br iesdorg to agan na 
Coad Ne een ee eee, 8 Cosette ee eee arenes e  BSOLVIOS La Ds istoned 

Oe S 8S Oe 6 2 ee eh ee Ke ee sevtveweagd LUST t Leogs5 ) 8a to taeA 

60a ON ek We Oe 6 6 2's 8 vol ytetemeo to eta) ) y 
eet tte reerrseenenssererecu recuse hos Metodusexs mo muimext 
as. feae , 4 ee ee 6 eee we he eee oeeee +* es ,979 ,9yetaog 1Vtenoitet2 f' 
@88 .3L ee ee ar ee +V OO beer ese wear ee eee e eOORRODSH to atded ~- | 
€S0,.1 tie + « ete oe he ee i ee ee 2 {> ye ; 
000,84 - a-e * * "aes Oe OW Fh ek ww alee eee 659 ‘to frigopos {1c a 


“Gee hearst tava Gn eee a ++ vosgol Yo tav0908 Noa 7 


a! 


i ‘ia i ‘on PP 7 ; ; 4 a i : , 3 ; » M fy 
I Ng eh le ie ars a Fae re ee 4: hull om 


De 


L161 


The inventory on December 31, 1909, the date on which the 
executors wish to render an accounting. is as follows: 


5% mortgage, $40,000. 

Five 5% first mortgage bonds of A. Railway Company. 

Interest on X's advances amounts to 3350 and on C's 
advences 8575. ; 


. Prepare (a) a summary statement separating principal end 
s \ * . Py ° 
income, (bd) a statement showing amounts due beneficiaries, (c 
statement showing the commission due executors. 


a 


Ref. 31-6 
164 


PROBLEM NO. 163 162 
(N.Y. C.P.A. Examination) 


Robert J. Green died on November 14, 1910, leaving four 
children, Artnur, Jane, Frederick and John. The estate consists 
of the following property: cash in the bank $100,000; books and 
household furniture $5,500; jewelry appraised at $3,500; 1,000 
Success Mining Co's shares at $50 each; 50 New York Central 
1920-5's bonds at $1,000 each, interest payable January and July; 
sundry debts to the estate $7,500; bond and mortgage on James 


Whitman's real estate $15,000, 5% interest payable annually on 


December G1; Leasehold »roperty that has 10 years to run with 
an annual rental of $3,500 and average yearly expenses for 
repairs, taxes etc. $1,500, sublet to Charles Whinney for 2 
fixed rental of $7,000; at termination of lease landlord is to 
pay us $5,000 for all improvements. (Calculate the value of 
leasé on the basis of the following data: 10 years' annua ty 

of $1 at 4% gives 8.11 years! purchase; present value of $1. due 
in 0 years O4% i8. »675564 -« 


On opening the will the following bequests are found: the 
pooks and househould furniture are donated to Mrs. S. Jordan, 4 
niece of the testator; to Paul Smith, a friend, $5,000; the 
palance of the property is to be equally distributed among the 
children. Four friends are designated by the will to act as 
executors; Paul Finley, John Smith, A.S. Neff and J.H. Jones. 


The funeral expenses amount to $110; expenses. of probating 
the will, executors' bond etc. $175; stationery and printing 
$75, inheritance tax 81,200. : 


The executors collect the debdtors' accounts, the interest 
on the New York Central bonds on January 1 and July 1, 1911 and 
on the bond and mortgage December 31, 1910, sell the jewelry for 
$3,000, receive yearly dividend check on the Success Mining 
stock $2,500 declared December 1, 1910, sell the lease for 
$20,000, the bonds at 102 and the shares at 59, advance to 
Arthur Green 510,000 on account of legacy and hand over the 
household furniture and books to Mrs. Jordan. 


Prepare (a) summary statement separating principal and in- 
come, (bv) statement showi ng amounts due beneficiaries, (c) state- 
ment showing commission due the executors. (No schedules 
required). 


164 






fol -O% MGTGORL: i. . 
(motssn inex .A.d.9 Ba we 7 


ea 
S) 
1 


quot gniveet ,OLCL .sf tedawsvol mo beth a 9% v4 * tredos 
ateiance etsatag efT .ndot bas dogtehets. ,onst .mwast 


Ars evood ;000,001¢ xAnsd edt mi deso :ytt q gubwoitor ant to 






000,.f :008@,.66 ts bealerqqs yifewet (008, Sic 
[sttne) 2t0Y woll 0@ jdose 08 t@ eetsde e*oD 


iwlut bos yrounet sidsyeq teotedat ,slose 000,f¢ ¢8 abmod a 
eomst. mo enestton bas brod ,008,.°§ esstae sav oF ah Mg 
‘mo yLisuans sfdeysq tastetat Ré ,000,01¢ etstee Iset a'n. 4 
atiw aur of arsey Of een tart ytrocot¢e dLodeasel {16 tedueosd 
tot esansgxs yitsey exeteve bas 008,5¢ to Iatnet Ieuans ns 
B tot yeonin’ eelrecdd of teldve ,008,Ig .ots sexs? ,etisget — 
ot at brofbasl easel to mottenimtet te (000,%% to Leitner bexit 
10 sulsy ent etelveted) .atmemevotgms Ife tot 000.8% av ysq 
viivons ‘ersey OL istsh gaiwolfot et to siasd odd mo easel 
9ub Io to evlav tnsastgq jeasdorwq ‘etsey 1.8. rigs | Ro ts to 
| | 30603. af RS ersey OL at 


sit :bavot sts atesuped gagwolfol adt ILiw edt gnineqo nO 
S ,wabiot .0 .etl ot betsmob ots etutiniwt bluondeayod Sas edtood 
edt ;000.8$ ,bneitt & .méim® fuel oF ;10¢eteet edt to eosin 
sit nooms botuditste  vyifeupe ed ot af yStecotq end To sonsisd 
eS tos of Litw ent yd Tee oy ets soxeitt twol snetbiino 
-eonot .H.t Sus tte .2.A , time acicol .yeinif ivs{ ,etosyooxe 


anitacoig to seaneqxs :0£f6% of tavome aeensgxe Istenut oT 
gnitoaicrg bos yrenottadea j8°L3 .ote dnod ‘exotuoexe ,iiiw ont. 
003,14 xat sonstiztednt .évg 


taexetni oft .atauvooos ‘etotdsh adt toslios etotucexs enT 
hos [fel .«f ylut bow £ vrsunst mo abrod {srtmed waro¥ well saf no 
tot ytlewe, edt ifee ,OLGL .I& tedmaced egeyetom bus Saod on? mo 
Riinilt easooue ercit no doors bnobivib yitsey ev leoet 000.53 
tot easel eft Ifee .OL@L .f tedmsoed betalosbh 00t,S%y adoota 
of gonsev5s .@@ ta cortede ont bae SOL ts sbhaod ef ,000,08¢ 
add tovo baad Bas yoonel to tngos98 mo 000,0L° ngetd Tus tA 
<pbxol .atM of sxood bue etutioxyt bLodeauod 


-af bas Isqitonttag anitartsees Inemetste yvrsimne (s) staqerd 
-state {9) ,gokisiotteasd oud atnvonms sniwode tnemetate (d) ,emoo 
aolyberioa oll) .etotuoexe off oud moteainmoo gnivoda tnem 
, | . (betiupet 


: a<S8 . tof 
3s 


i aa ie een : 7 Pia» 





PROBLEM NO. 164 153 
(N.Y. C.P.A. Examination) 


James Stetson is appointed trustee of the manufacturing 
business of John Brightlawn, for the purpose of rehabiliation. On 
taking charge he finds that the available assets are: cash in 
bank, $356; accounts receivable, (a) good, $3,712; (bv) probably 
uncollectible, $350. The working and trading assets consist of: 
raw materials, $17,258; sundry manufacturing supplies, $700; 
finished goods, $8,000; goods in process, $30,945.70. Other 
assets comprise: machinery and machine tools, $41,000; shop and 
hand tools, 41,300; deferred debits to manufacturing, $530. The 
liabilities are: creditors! account, $39,700; wages accrued, 
productive 8500, unskilled $230. 


The transactions under the trusteeship are as follows: 
Loaned by creditors for immediate needs, $7,000. Purchased on 
book accounts: raw materials, $8,300; sundry manufacturing 
supplies, $9,500. Factory expense: paid in cash, $1,300; in- 
curred as a liability to creditors and subsequently liquidated, 
$2,100. The doubtful accounts receivable proved worthless. Cash 
paid for: productive labor, %16,000; unskilled labor $2,500; 
general expense, $8,000; additional shop tools, %609; freight 
inward, on raw materials manufactured and sold, $60. Interest 
allowed to creditors on their accounts amounted to $143.10. The 
trustee advanced $4,300 to John Brightlawn on account of expected 
profits; the sales of finished wares amounted to $91,000. 


At the close of the trusteeship, the trustee's books show 
the working and trading assets to be: finished goods, $11,000; 
goods in process, $10,450; raw materials, $1,945.70; manufacturing 
supplies, $395.25. There is besides an amount of $750.10 
representing factory expenses unapplied. The creditors’ accounts 
show a balance of $1,650.30, while the uncollected accounts 
receivable amount to $2,975.36. The shop and hand tools amount 


to $1,609. 


Prepare an account which, while respecting the ficuciary 
character of the relations of the trustee and of the proprietor 
of the business, will reflect logically and clearly the result 
of J. Stetson's administration. 


Ref. 34-6 
164 


By a 
2 ae a 
gol pat .OUu MeL AOA Ty 


orinstostunem ot +o seteutd betaiogas ai 
nO .sortetlidsrist ‘ro ae Ie edt tot agit 
pk aso 296 eteaes oid ay eds 3 Le 
eldadorg {d) -Siv.6% ,bo0B 18 ,oidev keoet adnue (ae 
sto salanco 8398386 ga ibett brs gnixirow emt + Se , oid isos Loony 
ove ,esiiqaws ast frat OST UM Bm wrbaue ,888,Vtd 
tonto OV. ade Of} ,aa990TE nt aboog (000.8% « 
bas goa ;,000, 18% celoot emisosm Sis qronisoem ta irq 
att .0ce¢ grt tat 820i So of ie idep Detreteb ,00S.Ly seafood 
,peuTaos eogs¥ -Qor 268 ,tn0908 tazyot Lbeto 19%S ag itifidsil 
} 0699 beLfilecs 0084 ev itoubotd 











-awollot #6 978 qisesetanst gi? reba scottosanstt ocd ep 
no beasdoted -.900,%9 .abeen etsibsamt tot gatos het yd bensol 
an krason Tense yrbaue 7008 8% ,eisitestsa wet :acmyo998 xood 
uni ,008,1@ .dlamo mt bis reanagze yrosost .008,.¢3 .aeiiqgue 

patsbiupll yismeupoadue bas etot ibet9 oF sifidsti 6 ap 5 

dasd .eeoidtrow bevotd 9 idey reoet ahiso000s wsitdssob eat 
-o0d 8) todel pelilidanu -900 219 .todel svitouborg stot bisq 
sigtot? }@009 .efoos qode Isma it ihbs 900,89 yoareate {stenss 
teatedal 03S ,bfoa bas botutosivuasa als lies sm wat mo ,otewnt 
ait .Of.d819 of pedauoms atavoo7s  sioat mo arot thot oF bewoils 
hetooqxs To tnwoooR M0 owe itaig itt aiot of 00s, a4 boonsvbs sotauis 
900, 1e2 of bestavoms eoTew hadainii to eefsa eft j;atitowd. 


woda ehood steetanut? om ~qidasotewtt olf to seolo ont JA 
(000,189 .@b003 bese init ied of ateees atibats bas gnidzow ssid 
en itutostussa 5 ov .2oe, 18 216 brodam wet -08h .OL% ,azepotg al aboo3g - 

o1.oev* to tavoms Ms aeb iaod af eteat ,ag acess ,aekiqquea — 

atfavopos *‘atos ibaxo oatT petlagens ecansqxe yrotost ga itaeastgot 

eatryoons botoe ll oom eds olisa .0C 080,15 te ‘gone iad & wore 

tmusome @Loor pied bam qode oat 82.882, 80 oF Iavons alLdsv roost 

: ' : -208 le ot 


sofsitqotg anv To Om8 sesautt eat to anottslet grit to tetosts 
tiyast edd yixrse fo pas yileotgol tgoettot fifty ,eaontaud eit to 
 ~poitettainioos atadoatesS «Lt To © 


Be bS » ton 


yistond it ons gn isosqaet aiicw _dio tc $ass0908 ns exaqest 


Bol 





BS 


PROBLEM Wo. 165 16 
(N.Y C.P.A. Examination) 


A trust estate, the funds remaining for division emounting 
to $225,000, is to be divided as of January 1, 1900. The 
beneficiaries were to share in the whole estate as follows: A two 
fifths, B one tenth, © two fifths and D one tenth. <A was paid 
December 31, 1898, $10,000 and January 30, 1899; $5,000. C was 
paid December Z1, 1897, $15,000. B and D were each paid January 
30, 1898, $10,000. Prepare in correct form a statement showing 
the division of the remaining funds, calculating interest at 5%. 


PROBLEM NO. 166 
(N.Y. C.P.A. Examination) 


A small trust fund is invested for the benefit of a minor, 
having a taxable income; open accounts that will serve the 
interest of the recipient of the income: 


January 1 Cash received as fund $50,000 

January 2 Purchased 200 shares railroad stock @ $100 
- January 8 Sold 200 shares railroad stock @ $110 

January 8 Dividends received $1,000 


Ref. ATS 
164 


Bae ead Pas | . 


—- 





SBf 
















anitavoms moteaivid tol gain 
ent .o0ef ,f paper 

ows A :ewollot #6 sfsise 3:0 qj af oxede 
5 ise ssw A .ttass ono © bas edttit ows 9 
eevw 5 .000,22..0081 ,0& Yrsenel bas 000 ,6 Sf .f5 19d 
yrsunet Sieq dose sv9ow I bas @ +000,8L¢ se ays sed bie 
aniveda ¢nemetsta s mrot toettes mi ot Bee espe BC6L .0c 
Re $8 Jeaertetnt an iteivolse aan psi oul noteivid odt — 


dof low xasenet i, ua ae 
(nottenkmax® ATO YeU) fF Ht ’ 068 
stodim s to. tftened sft rot betseval er bast sauxd fisme A er ; 


ait oviea ifaw tect atawsooos meqo janocont eldoxes fabtarad 
7 oak ui wha io de ical kad to podink at 


OO: B doote sohaiaeiest pie lp as | 
oL18 ® Aoote Psat So eetsrla OOS it 
boviooe: abrobivid 3 > 


bas 


oO 


BROKZRAGE ACCOUNTING 16 
PROBLEM NO. 167 
(N.Y. C.; P.A. Examination) 
The followine is the summary of a trial balance taken from 


the books of Messrs. Broad, Street & Company (stock brokers) 
Dec. 31, 1902: 


ane “Trom cus Tomevepen ge ese eee ee ent es $5,250,000 
we “G0 -CUR COTA Pe mee ere te ic ways eee unees $ 125,000 
ot eee Clase 'y seine eka 75,000 

 Toans si. “red Wanete ds tra ees ek es eric 4,750,000 
“Borrowed and loaned ie ee yey SNe Rael 55, 000 
LT VOR UIT re eS ek os 6 se teak ce ne He a 290,000 
Furniture and fixtures,.:... ny hk aN ass 1,800 
PUCETCO Ry «eee wea ee ee ee ee a eae Sere 16,700 
COM Oi ge se se eR oe ee Pewee eh oe se 08 ; 95,300 
Boye Le Pa ae ie ee a ee rye eee 17,200 
Bia STOR fe oa REE. of SOREL ee Or ae ° 325,000 
PPC fs. rae Goa bis ck eek he ae ey 267,000 


$5,634,000 $5,634,000 


An analysis of the borrowed and loaned account showed stocks 
borrowed $185,000, and stocks loaned $240,000. The firm owed 

- commission bills amounting to $750, and the interest accrued on 
loans amounted to $1,520. The market value of the securities (not 
including stocks borrowed) calculated at closing prices Dec. 31, 
1902, was ‘6,200,000, of which #5 1700 ,000 was pledged to secure 
loans, $65,000 was in transfer, $243,000 was loaned to other 
brokers, the remaining $192,000 being on hand. 


Prepare pro forma balance sheet with profit and loss account, 
dividing profits or losses equally among the partners. 


Ref. 14-4 
164 


| ) a VS oO eo oe ee 7 - 
ae mite, _ rn abhi hi ad ad ; eT eae 
f eh) ein 


wy ‘ 
1 




















mont neiet soneisd Ista s to ‘recuse 
(asexoid xoote } yeneqanod & taotte « 


aoe acr. * 000, ,.068.46% s : 
* ane fe aeswee 


coo, ¢' Y sdocseeeeane? ** 
900 ,O&T 4 od ca aiiebagann ate 94 PRA eas Me 
O00 ,3e + tayooes bensol bas poworr0h 
; 00 .0e8S | gaenee poate ae eee ea Vee ae! atnontasval a 
. ey ; see gaan dies ss 0) 59 GP aemmee 53 9 rus imi ; ay 


oot .al Pe eh Tada es eS ee van” 
| Lake des p MORN AERIS 


ee ro bk eh ieee 


OOS, TL Se Rabe oe CAS een ere ) 
Pee hn ery ’ f 0 
al f 


ae ee |  paord * * ; Sates ive 


ne or ; he ie 
OCO ,.62G oo) SR ae Ae TTT 

Tats co : Shae: | , ~~ 
N50 Tas : te a MS Ri laces ania en adi Wee a -U- 


n aca ee 
000s 629 3 wae 
autoota bowers InwooIs be 

Kewo mrit eat 000 ,O9se be 

ro bSutoos Taotetal eit SMB + 
ton) asid¢rrues 98 to ou lev toxvtem oclT 

Le .99d Bedit? giieofo #8 pagelsotao (bewostod avloota gttbutont 

atvose of bogbelq es 000, 00° ,6¢ do isw To .000 ,00S,30. saw .Soet 

sgito ot bensol @sw O00, E286 ,tetaacsts ni eaw 000 aac , aaeol a 
.basd no griod G00 ,Sei@ gninismet ous ,eredomd = 





neol bts bewotto¢ edt to ateyisns aA 

maol aioots Die 000.8314 bewortod | 
oaes of gn itnvons alftd motesimmod — \ae 
098,15 of Setavoue ansoiwl 9 | 


~touooos asol bas $ttota ritiw toerle gore Lad borrol ott ereqott t} ae ua 
aes (eT ontisg edt gnomes Yi iaspe gexeol ro etitotd aaibitvib- 
| Be wee 


— 


4 
ean) | 
a Y 


) 
b | 


dol 





a ee 
ale hs ; ’ ‘ais } re er ‘na x wae ‘ale © 
REE maha ee. i ma eae PO Rew TAR aR! Rc 





PROBLEM NO. 168 166 
(N.¥. C.P.A. Bxamination) 


A, B and © form a copdrtnership to engage in the business 

of buying and selling stocks on commission. A is a special 
martner and B and C are active vartners. A and C each contribute 
$100,000 cash capital, and B who owns a seat on the stock 

xchange valued at $75,000 turned in, contributed $25,060, 
additional capital. A is to receive interest on his capital 
at 6% and 1/6 of the net orofits. B and C are each to receive 
5/12 of the net profits. 


At the end of the first year the condition of the business 
is as follows: 


Capital (subject to profits and withdrawal) as originally 
invested: 
New York city bonds, 4%, purchased at par for 


eee EN ree POET et Sey ove igs fiw 2 db ov «lk oie ale 600s ve Seen e's Soph, U00 
Stock in office safe purchased for account of 
CU COIR Tigi ow eee ee ee ee 6 ne EIST R ae Seta Ton yi aie e we wk ae. © x L171, , 000 


Customers! accounts, iong 
No. of shares bought 35,000 


Mariet pri oe + FS st Ae DP Ore + EER 8 Se 8 OTEK Se 8 HH BIG CED 2 oe FS ee A BTM 2 6 ae 508, 000 
Cash margin Dar aps S 256 pee 6 8 6 ee OU Ase ee RO TE wee eC He OT + OD » 000 
Balance FP SF Fe OC Ce Se eek ee ee Oe ee Te eS RS &2 3 150 3 000 


Customers' accounts, short 
No. of shares sold 6,500 


Market price,..+..+.... cht cee AA AAG ESE es eo 266,000 
Cash margin par 10%, oe BWP ET BBR RSS DO Ke ee Fe vweaenreevevas 655 000 
MT HERG ROR Oe de Ke SAN ses 0 eS Fase 0 | GOO, 000 


Bank loans on city bonds, par value, $3,000,000, less 5% 
margin. Bank loans on stocks, market value, ‘:624,000, less 20% 
margin. 

otocks borrowed and loaned to account for full complement 
of securities. 

Commission earned $88,700; excess of interest earned over 
interest paid, exclusive of interest on A's canital, $41,300. 

Office salaries 37,800; office expense, rent etc. 840,000. 

Partners' drawings A (315,000; B $30,000; C $30,000. 


Prepare a statement showing the cash on hand, also a profit 
and loss account and a briance sheet. 


Ref. 22-3. 
164 


et udittaoo dose D bs A 

















eat Bef oH ears a a dl A ae i - tid a ih 
(ao been mae hha Ee oe * oe 
the tre. | hs tie 






ia vale env nt 


enagns, of ieee mrot 0 bus 4 .A - 
{stooce 8 ef ; rot we | cid guiysd to 7 


.noteatmmoes me 
,aroniis¢ evitos re ag, " 


Yoota edt no t898 8) aerwo ost son 
100 


.900 686 botud ftsT109 “et bomtud | 
fad tao aid no teetetal evisses of ai A -tatiqse ee pbs 
avisgot of dose 91s > bos & ~atitow 9 to O\i Bi be ical 

.at How am ets 50 Se 


ex seu cue to bao ott ee 
“yawoLLot 26 al 4) ae 


¢ LLen ty ito ok: (teuacbst te bas és ek ot $ sostdus) ed 
' ava 
abnod yt is ray wet 


yot tS8a 73 Heasnotwwyg - ed a 
seeee ,iny0008 9ortto Lig, . 


600,005,886 44 3% 212 4 . eae <a ee Uae 
to tuuoo08 Tot beasdouug Stee eo itto nk woote 
remot ayo 


Anoniaud oft to nord £brnod erm ts 


000. tN 1 ene coe nace + 04 8 0 tA By’ ; 

. ’ of asittto99S aremod au o, 
5 000,ao taigsod agusne to 20% 
900 ,.008 Sy coe tosicel ah: 
000 ,Occ ; aeons vee 8 ee eee 3 nig tsa s8Go * 8 
j ‘ vas 4 as 4} : 
000 , 06! Sy cw ~~ a 
| | , he Stones atnso098 tex ahr aio a 


006.3 ‘plea estes ee Pes) 4 i 
altace s-10ime > late * mee sre ie aoity sousaM . ‘ yy 
i a a ‘ 


a : 
006,836 ‘get 6 ooh oa al OP ae 


een deer 


ry 
O00 » ae ee ee le hs 
— . 7) ae 
] fh 
( Pe Te an 
} - 


" Mi cnientaieaer temeetilte 
urssenneng Aline Ii 7 ‘ Fa it. 
sa! 


ee ee 






HOC tof - oe ¢iee @*'* *** 
000.08) 5 | 


Re sect 60005 000,80 .auter 19¢- ‘eamod ito £0 ansol. nat, | 7. 
nos eeelt 000,230" «eu lev todesm Bto0Fe £10 ansok y ae ie 
. ages 


 $a0908 of penanol Essie sicueie en 
~asitituoss to 


tromatomoo [fw to: 7 
pents9 motaaimmod 


oO « Os .ofo Inot ,sRMoCe : 
@ ;000,8L7 A “agniwen® tar ond tet i) ; ay 


060,085 9 1000 05 
ard ga iwola —— as oxeqott | ie 
.toode spasied 5 Sas Sau0a9s pant one i 


tavo bontee tastes 9 HagOKe 5007. 88% 
.008 ibe istiqso 8'A mo teorotat Pe sv fay foxe .Fi8¢ teorstal ‘6 
o agitie 1000.% aa tueise goltto a 


titer = oats nad no dass 


pees 












PROBLEM NO. 169 167 
(N.Y. C.P.A. Examination) 


Broad, Beaver & Co., Cotton Oil Brokers (members of P.E.C, 
Ass'n), trace in cotton oil options for their own account. 


The following transactions appear on their books for to- 
day's trading: 


PURCHASES FROM CLEARING HOUSE BROKERS 


Per 100 lb. 

Carpenter, Baczot & Co... 400 bbl., Jan. delivery, price,... $7.02 
MGtEen, RYEM Se Cos wes © ov 600 Mar. v gear g © 
do. Pree SOO!) = Jun. # ¥ Teed 
William Commission Pee a a * cabs " " 6.90 
v -100 ji tt a 5.02 


SOLD TO CLEARING HOUSE BROKERS 


Carpenter, Bagot & Co... 400 bbl - , dan. delivery, price,... ‘7.03 


Moyvean, Ryan & Cow,«+..-- 800 Mar. ¥ Teer 
do. Sale elee « Too * Jun. i (res 
illiam Commission Co.,. 100 " oul. . : 6-95 








CLEARING HOUSE CLOSING PRICES 


AGI 6 mnth nce 8 a)4 e+ « 9 woe pele a= Oe 
MAP Clyne <\0 eM a! oe te mee has ‘Siw soee 
ee Fie a ie a se gn exe oe ee 
PULY 4 +o o5s = SK ale > baie 8-woetaete 6.93 


NOTH--Hach barrel is considered as containing 400 lb. of oil. 


Show transaction in all the books anc a profit and loss 
account, taxing the inventory at closing prices. 


Ref. 28-4 
164 





. Ci | | | cS q 
4 - ; ‘ ; f ; tt 
TOL —s-« CBL. .OM MTAOMT | : | ak: 
(notsscinsxi Py: + Ye) oo 
»0.8.0 to eredane } arolotd [£0 mosttod 4.05 &  tevsed , haoid 
«tvooos nwo ticdt tot enoitqo Lhe mottoo ak ‘pbert e(o'sead 
“ot trot aiveona tteodt mo sseqas | aaaivooment getveste 
, " “anion a'ysb 
BARMOAG RAUVOK OHTAAGLO MOTE CREAHDAUY i a 
dt OOL t9 i 
wo» 9S +++ 99 btg wwrevilab ante «rid © Ds 00 2 3. Sones tetaegqred 
is.° " ota ae, a ee S cays ,MeQtoM ‘ 
os. " " mu " OOS \. e-awia oes «od 
0¢.3 " " Pa Fy 8 ® COB: 6 <se9 nofeeismod wees 
Se.3 ; : Wye 20h. ++ 
BAO TeUOH DUTAARTD oT athe 
& TY 1+. ,99h4q «yvteviteb saat . -idd OOb .«.900 & toned stetaeeriso 
cass is a " all 0o8 ee | +09 3 veces at8Q trols 
er.v aad * seu * 009? eenwege : +Ob 
E2.3 7 ° fa " QOL «..00 molaatinwod meili iy 
SLDAAT OMYROUD BRUOH DITRABIO | a 


So.Te sain d1dia ely ecole nies « be eae 
Sc. Pete eee ee eee eres eee g MOTE f 
6&.¥ see éuee ee Pe ee 
EVed ee ed bot ARE 


Ai0 to .dl OOD gniningnoeg as botab tanoo at Loriad dosk--BTOM 


ecol bas titota s See atlood eff ite td goktoaanext wore 
-ssoliq gniiseto ta Yrosnevnt oxi? sania atityos08 


(BeBS yd 9h 
Bef 


i ‘ mn ; 
i J # 
Pr * 
4 = i I 
ee j - : ra ‘ 4 7 st j bd Le iy) ' ¥ io ‘ 
, f 1 Airey my i aA 
On ¥ 7 7h 4 se a al ea oi [aire 7 a a A 


PROBIEM NO. 170 168 


(N.Y. (GSP LAy Bxamination} 


A stocx brokerage firm composed of three partners agreed to 
dissolve December 31, 1919. 


The original capital contributed January 2, 1919 was as 
follows: Smith, cash $100,000; Walker, cash $150,000; Jones, 
cash 340,000. Jones's capital account was credited with $80,000 
and Sis seat in the Stock Exchange held by the firm as collateral 
for the same, 


The partnership agreement recites the following facts: 
Smith was allowed to withdraw $10,000 end charge same to Expense; 
Walker was allowed to withdraw $15,000 and charge same to 
Expense; Jones was allowed to withdraw $20,000 and charge same 
to Exvense. 


Interest on partners! capital was to be 5% per annum on’ 
original amount; profits or losses were to be shared equally. 


The interim transactions during the’ year as recorded upon 
the blotter were: 


Purchases of 1,000 bonds, par value $1,000 each, for 
jL,005,000, maturing January 2, 1929. 


Purchases of stocks for customers, long, 50,000 shares (par 
value $100 each) for 34,750,000. 


Sales of stocks for customers, short, 50,000 shares (per 
value $100 each) for 34,625,000. 


Margin received in cash from customers, long, @500,000. 
Margin received in cash from customers, short, $500,000. 


The following loans were obtained from banks on collateral: 
On bonds $750,000: interest paid in full to December 31, 1919, 
$32,500; on stocks 3150,000: interest peid in full to December 31, 
1919, $6,000% 


To complete transactions for account of customers all stocks 
were either porrowead or loaned. 


The earnings consisted of coimzissions $175,000 received in 
full, interest receivable $85,000, of which $70,000 was collected. 
The expenses were “62,500 (exclusive of partners’ allowances 
cr interest paid on capital), of which {2,500 remained unpaid at 
time of dissolution. 
164 






























Bat 
(rotten tat Ave as, 


‘ot hestgs etonst.%q gored to pewoquo af, 


as asw efer .s ia darudestne0 istiqss fst 

. ,~aeno0t 000, 08L6 dese ,toa Lev ,O00 » eso _ @ sai 
000,088 dttiw bed theto esw Tmyooos Letiaso etasnot oo 

{stetsiions 34 mit edt yd bifed . en. 19088 ‘aig ni cae rete q 


setort ofr iwo fLot ont. aottost rf 
of sane episde bas 000.0L0 wertbeit fr od. bewol. ; 
>t omee ogtodo bas 000, art wards tw oF powo lls 


, aan oqel 
emse satsco bas 000.080 vrenbuid bw at sidahatec asw aoob. ieenee sie 


oan 


a puseuees 19¢ Sa od ad asw {os iqso ‘arondas; O° gegtasal 
Vl inupe boradea od of stow esanol To antietd avanone fen igito 


noqu bebtoost as 0.5 OV ‘got .gntxub enoitosanstt mitosar oT 
retev tetsold emt 
‘Ar 


10t ,#959 000. £o on ee 189 stewed 000, to asesnotvt 
Sef 8 Yrsunst ga suse :000 5006 ie 


* an 
asc) gorede 000,06 wre L atomotevo tot axlgote to a9 esrb ut 7 vey 4 
000,080«8% tot (dose OOLG suisy ae 


1sq) so76ra 000,08 ot 10 218 aremodes tot gxoota. to aelse ua 
000 .GS0 eh tot (dose 0ole outev - e 


+000, 20a pee" .atamosens ‘moxt dass ak bovieost nigreM alae 


trode (2TEGtO# BLO aot sieso re povisoo: aigrol con 


sferetsilos no sumed moti ben tatdo sta v enpoL gtttwotlot. oT ‘ 
Off ,f8 tedssoed of Lint al brag saetotat 3000 408 TS ret! 10 AG 
ae mo 


ft sodnsost of List mt Saee shisasivuct lec honad axoos ae 
.000.8% merits a 


.000, 0083 . 


omotaso To Jro9 08 20% is liad ets igqmos ot eh) ae 


axtoote {in aT 
od baneod is segaaae tort fe 


nt hovieost 000. tLe anoi@ekisiod to be 
ehatoalios ai¥ 0c0,ONS so talw to 000,885. § 


asonewolin 'etontisq to sv ieuiox9) ee 8 
‘$8 5 teagan San tame 008,.S° cdokut to...(fettgs 


The partners had withdrawn as follows: Smith $16,500, 

Walker $18,750, Jones $18,500. The market value of the bonds was 
~L,004,500. The Stock xchange seat was finally sold to Walker 
for $85,000, the profit therefrom reverting to the firm. 

Prepare statements prior to dissolution, showing (a) cash 
receipts and disbursements, and balance in bank, (b) income and 
expencitures, (c) condition at time of dissolution, (d) respective 
partners' capital accounts, 


Ref.. 46-2 
PROBLEM NO. 171 
iNuY «Cari. Examination) 


The following is a trial balance of a firm of stockbrokers 
Going business uncer the name of Henderson & Greene? 


Ale eth ds kek oe cee + on pka0 ass, $10,500,000 


Gti pit MOT Bs <t0.0-+is POOR Se ee é & 250,000 
Dp ORY se diniabits! «4's es xh eRe RE ES erage 150,000 
ae ecieiA isle als Ae calla Big k o.6 ok wR 8-4 8 88 we 9,500,000 
Borrowed on loan @ccount,..---.... 10,000 
BU AC a ee dai ab eR oe OM a 580,000 
PUTA ee ONO IST YCH pss ca kee eves 3,600 
Ne iris icles mls latest a nulgeap pai nde ier P 335, 400 
CommisSion account,...--+e-ee-seee 190, 600 
FAME NS ES gcws csc aso ene et Sate hy yl’ *% 34,400 
FIOMOSTEONs + ~< sue ne 2 ale ee «ale ae 650,000 
Cp eh Pee Eee ET ee 534,000 





(ae we ee ee 





BLOCckes DOYTOWOG, «<5 es masse kee < Te 370,000 
stocks loaned; -..+.. To 480,000 
Commissions due other brokers,.. 1,000 
Interest accrued on loans,...... 3, 040 
otocks pledged to secure loans, 11,400,000 
"StGece in Transfers «0+ secs 130, 000 
Stocks loaned to other brokers, 486,000 
BEOGKS OFF Nand, «se eae Dee ew anaes 384,000 


Prepare from the above a financial statement in proper 
technical accounting form. 


Ref. 50-5 
164 











Oe ke | 
(aL 


1008, o.£3 at fue pag a 
Baw absod sit to euiev toxtem sit 5 
toxis! ot bfoe ylisnit esw daoa om. of 

| -M@t it edd oF gu isieves arene a 


fieso (8) aniwode actdusaeneeeas rote | adnscts: 
Se smoont (d) wlnsd mi comaied bos .atcomanns 
SVitvoczor (6) ,roistuloen ib Yo omit ts aor i iting an 
Ff: nN of RIM ODD, Bh 


Ivf On MAIGONT 
(no ttan tang, ode Ts 9° +¥.%) 


axexXotdabeta to att 3 te. gonGisd [sits 8 @L mente ox? eer a 
‘sns9t) 3 mosrabreH to omen oct xeSma aasnteaud gakob— 


000 ,.008,05¢ chwdee deed’ n ke <nael's Uke teeenans 






000,02a2 ra CEP eo nee reed ond eeeeee + ULMOSEUD : 

000.0aL +e w em eee e emer towenieses es (MESO 
000,002.49 POWKARO Hee ee enews meen etnee galt ae 
000 ,OLf sreeveses Scoos neol mo Sevorr3ed ~ 
900,082 THRO HHO eee sewer cea n ee BING SOVAL 

005,45 teres sense ee @OTMINET DNS otusinty 
OOD Pe POR eee wwe wer eeeeeae cere eg tBOTOMN) | 
008,0CL° (tt ter eeesseseeagdnooos soteaimmop 

+4 ; OOL bE De i ee ee ee eo) 

000,023 COS e mew ewe see eebawes ce » sNOSTOOHSH © 
000,sa5a 


44 PGG id ee ee ee eres 3 eT bs <2 
—iniininetiiensusion., h > | her 
: ; vil LY 


. a 4 T 

SLOT: ok PS Stan 8 Pen cl i 
000,0°%%: citisereserwess «biowornned ifood2’ gi co Ba A 
000 ,O8s oe aa tose seeeeees DanBoL giogta lis ; ' a « 
oe. £ ny eamtode tecto ee enotaeinmod = - _ 
Oh0 ,f veeeee  @GB0L MO boevto08 Jaoresal ah - 
000,00%,ff ,ensol otupee ot be pape . 
000 , O&L : tt ewes ew ewe e g COT 7:1 td & . up. ‘a 
600,38 1arsilo1d tedto of Sensel axoose abe 
ee J bers abo 


bar 


INSOLVENCY ACCOUNTS 170 
STATEMENT OF AFFAIRS 
PROBLEM 0.172 

(N.Y. C.P.A. Examination) 


Jones & Robinson,mmerchants, are unable to meet their obliga- 


tions. From their books and the testimony of the insolvent debtors 


the following statement of their condition is ascertained: 


Cash on nancies pod kk eh EO Ge Olt can OR oa ae feare 67500. 00 
Debtors: 31,000 good: &600 doubtful, but estimated to 

produce’ dco: Be Re A oiaias gate ice cae Teng er 5 Ea 2,600.00 
rroperty, estimated to Sahai ¥o 000 ee ek Ee PA th ste, Fi tee QOOs OO 
Bills receivable, good, . , APE Perret ake gO a , 4,250.00 


Other securities: $3, 000 “pledges “with partially secured 
creditors; remainder held by the fully secured 


ee ee laa esis Bia Few Eee Pew ake ba we lee» is oS eae « #£8,000.00. 
er ree ae 1h gna. 7 «veils hele etek + 5 pk eee ee ch Me ms ale 9,000.00 
PO ee is OCP AWE SS 6 bo eigs ee hace we SS a Pee ee” yd ee Cee = Pye ee ee ae 
BURT Y LOBBGE 6s eae ak). Fe ORE. <) Go ae ee ae eyeetaee £5,000. 
Trade expenses). v+....+. eT eRy eure Peay + en caw es aE 7,400.00 
Creditors unsecured,....... iMacia eM elds ted ie the kaa a ok aoe 25,000.00 
CE EGw uC mMNPOPULOWLY BECUTCE, 66. cic wee hem te Mee nee ees 23, 900. 09 
UTeee LOtmuetiely gactred, OF. Ol erm és meee ae te reece ne 17,000.00 
Preferential claims: wages, salaries and taxes,........ 700.00 
DUE pe COLO PUD 5 + iblas, won xe ale PR eo lO ete lad ou0 ee e ® © 2 wee nee! ROE OOO. 00 
ROOLMSON HOMPUTAL ys . arcs so 0b ie ee de oh fetes TreveryyPeus eee _16,050.00 


Prepare a statement of affairs, showing the liabilities and 
the asset:' with respect to their reelization and hh agiaaroly also 
a deficiency account, showing such of the above stated particulars 
as would account for the deficiency shown by the cGukauens of 
affairs. 


Ref. 1-1 
164 





* 7 at " 7 
jl 
aor. ~ BEMUOODA roumsot ame ak Se yy 
BAIATIA %O THES , nae 
SOL .O% MEIEONT re) 
8 ae * one . "y ee if 7 
(noi tsa imsxmt wAsS.9 .Y.1) TS ‘oma 


esaiido tient teem of oldsnu ots ednedo cu: aoenidon 2 esnot 
etosdeb tnevioant odt to yromtteat odd bas sdood tiedd mort ron eat 
-benistteces ef moitibaog sfedt to thometeta geaiwoll 


BH ;008.8 B ...cewds a ce nee SR ers no died 
| ot betamites sud a 008% ‘boos 000, £0 setrotded 
00.003, PeCrererier, | eee 000, £6 30082 99ND OTC 
CO-000,8L sencvscnceesseues@@0g@@ Soubo<q oF Bedamites ony Pa 
eLOOS.e | sheen Sey: ee ,sidavisoet ellid 
be tw99R ‘YLLe tirse yetahs ope 000,80 _teeisixvoea tedstO 






00.000,8S Pe eee te eer kc re Oy 

66.000,.0 U4 ies (ED lees p 8QMEWSTD , Boro 

0000.0) St an are | .. 8gniwatd etoanidod 
GOG.s.6i -easéeowea @aewvneaeveeeaee Petr anwn eevee veeeeuv ae + ghd reey al 
008,17 ‘wee eee aeer eer weer ne eek meaner eane oe ee erve 

00,.000,é$ wah ee et ea 008 2 eee se ee oes & avn 

ty CO Ean): wie os: hee Pe ny »Ligtale ae « ¢DOTHOSS 

QO .000 TL vives cwesevee sean ume see >:  DOTHOES ce bros thong 

Pk) Aen re ee ,eexsd bas ag¢kisica ,eensw sanists is 19t9%9" 

O00. 000, OL seme cone up 5 4m «cHUMMMMIEN Luk «cvs ¢0/teri nn 

00. O60. eo setae n eee oneae ee eur aes eee vee .o++-eietiqes seen idon 

eee sonar = 


bas sektvilidsitl eA? aatwods partstis Yo tnenotata & “ onaqet 
coals smoigsbiupi£ bas noisssits @% tiads of toaqeot dit Teses ant 
sislvottis¢e Setete eveds edt ta sous gatwoda ,favoo00s yomeroited & 
Zo ¢ronetsasea aft yd aworda Yond Loita ect tol Jauogo8 cecietia 
2" 


fel toll 
ool | | 








PROBLEM NO. 173 L71 
(N.Y. C.P.A. Examination) 
‘The books of A, B, & Co., July 1, 1897, show the following: 


Cash on hand $176. Accounts receivable, good, $3,000; bad, 
3300; doubtful, $5,000 (expected to realize $3,800). Creditors, 
unsecured, $15,000; partially secured, $6,500 (estimated value of 
security $3,600); fully secured, $10,000 (estimated value of 
security $13,000). Rent of premises (taken for the year ending 
December 31, 1897) unpaid for June and July, $600. Salary of 
bookkeeper, due, $100. Liabilities on bills discounted $3,000. 
Stock of merchandise on hand $3,800 (estimated to realize $3,000). 
There is also @ further liability, on a contract which A, B and Co. 
cannot complete, estimated at $2,500. 


Prepare a statement of affairs, showing the financial condi- 
tion of the firm. 


Ref. 4eh 
PROBLEM NO. 174 
(wv, C,P.A.., Bxeanination) 


John Fleming & Co. make an assignment for the benefit of 
creditors August 21, 1896. The books show the following assets . 
and liabilities at that date: machinery and tools $7,524.61, mer- 
chandise $6,423.72, supplies $471.08, store and office fixtures 
$1,524.67, accounts receivable $4,071.29, cash in bank and in 
office $524.19, wages and salaries $624.71, unpaid taxes $432.12, 
. Chattel mortgage $7,500, accounts payable $3,471.20, bills 
payable, $4,424.68. 


The assignee had an appraisal made as follows: machinery and 
tools $4,724.19, merchandize $4,819.24, supplies $194.17, store 
and office fixtures $624.23. 


Of the accounts receivable $721.18 are considered worthless, 
The bank claims $500 of the cash belance to meet a bill receivabls 
to that amount, discounted on the day of assignment. The mort- 
gage above noted covers the machinery and tools and is dated 
June 1, 1894; interest at 6% paid to the last due date. There 
are insurance policies on the contents of the store for $10,000, 
dated July 1, 1896, one year, at 75 cents. The firm has dis- 
counted its bills receivable froin time to time, and $2,427.21 
(including the $500 note ebove mentioned) is outstanding at the 
time of the assignment. 


Required, to meke up the assignee!s inventory and schedules 
end to show the amount of assets for which he would be obliged to 
give a bond. 


Ref. 5-5 
164 
































~bsd 1000.88 ,booy ,sidsvicoos eimuoosA bos 
,@totibsto9 . 008 &% esc liset oF betoeqxs) 000,83 pees 
to sulsv botemitas ) 008,80 ,de tues pager (000.8 LG 
“to eulav botemitse) 000 ,OLG ,hotuse® YX ut ' ti 
ucibus resy ont tot noxes) esaimetg to tren . (00042 > 
to vreise .00d¢ .yivt bas emul tot blsqaw pee fd. 
,000,.26 botnuoserb allid mo aetettide bl -OOL@ ,eub « BOOT 
(000.6% sxifest of betsmives) 006.6¢ bass no sathusdotem to xoove — 
5 6ns & .A sdotidy tostino> & Ao iit ifids il soctiut s coals af gtoadT 7 a 
008,82 ts botanitae ,atelqmoo SommBo 


J 


etbnoo icionsnit ent gatwore .etketts to tnemetate 8 exeqett * 
ay -mtit oct to soit ' 


vere ot we ek a 
ATL .OH MiIGORS ia 
(sot tect tiooxd tke 2 ne : 


to sitened oot tok dnemepiese as e2lem 00 8% grime ti adot. | 
gteans antwolfot ont wore 2xood af” .O8s L% teupvA stot ibeto 

«tem .f8.452,°98 ealoos fas yreminosa ‘ete tart ts Bselsilidail brs; | 
AetuIart 90itto bas stote ,.80.INe¢g satiqgue <2 6582.00 eaivasdo a | 

a] bre umed at Meso ,0@S.190,4¢ eidavicooet einudoos 9%G0dbS8.L¢ 
~8E-SED% aexst Hiscav ,1Y.dS6 seicaies ons gagew .@LedS@2 aoltto | i 
effid .OS.193,.80 sideysg edavesos ,002,.%8 agsetrom tested. — val 
.Gd.388,4¢ eoidsyseq ° . 


bas vronidosm tawolflot @s shih Ise tsteds ms Sac eengziess ofT . ia 
siota ,TL.s@L4 astiggue ,bS,018, a0 es toasto tem aQ@L-BSV.bO afoot 
| 4 8S.289$ setutnit eoltto bas_ Pay 


~eegolcdrow borebtenos ets SL.189% efdeviecet etmioons eit tO iP ae iJ 
eldevisset [lid s toa of sonsisd aso edt to 00GG emisto anad off - 
-ttom off .tnengieas to yao edt mo bednucoats samwoum sods OF n 
hetss ef bre eloot bas yreninogm oat etavoo begon eveds e263 : a 
etstl .stab sub tesl aff ot Bisg M8 te teqgetmt Geesl «4 anit nl 
,000,01% tot stote ont to etasdnod om mo eelotlog somsiwanl ots . 
~eiB act omit eAT .etnoo av ts gtsey emo «OCS igh Glut Setas | a 
S.°S3.88 bac ,omtst of emtdy motl efdsvioost 64 id ast betmuco 8 

ot te gitbostesuo et (Senotsiam ovods atom 00G% ont guibufont}) = 
migiews eit to omtt 


e ore y 










gelubaing dus ytotmovnt eloongkeaa- ady quo exlsat 
ot bestido sd bivow st dobia tot etesea to savgoms 


: ae ; f at Yi oeeted t >F 


PROBLEI! NO. 176 172 
(N.Y. C.P.A. Examination) 


Being reauested by a merchant to prepare a statement for 
creditors, you find his accounte to be as follows: Real estate 
25,000, mortgaged for 310,000, interest overdue $750, interest 
accrued $125; goods on hand $18,000; fixtures $1,250; merchandise 
in warehouse $10,000, on which the merchant has borrowed $3,000; 
accounts receivable deemed good $10,500, doubtful $1,500, known 
to be bad $2,000; bills receivable (held by bank as collateral 
for an advence of $5,000) 46,800; cash $2,500. In addition to 
the above secured claims you find the following: accrued rent 
$000; taxes $750; wages $1,250. The merchant also owes A $6,000, 
B $5,500, C $13,500, D $6,850, E $1,800, F $2,650, G $1,225, 

H $1,400, and there is an unsecured disputed claim of K for 
$1,300. Submit the statement required. 


Ref, 6-2 
PROBLEM NO. 176 
(N.Y. C.P.A. Examination) 


John Thompson exhibits the following balance sheet of his 
business, dated June 30, 1900: 


SRST ws we aa a Peete ae ak se $ 750 Sundry creditors,...-. $ 6,000 
GOK COUCH a.ee ks eels S;D0U, Bills payable..ce.ee+« ) FyS00 
BLOCK: Ott, Wes eet v0.n 6,500 Bank (overdraft).....- 3,000 
PERUres, CBS. pode be aces Leto Balance, .ssssene-> jivnn. eye 

LO GEL g San ee ae ne owt $18,500 TOTAL. sexe kaaan ss $18,500 


On questioning Thompson it was found that he had omitted the 
following from his balance sheet: $250 owing for rent; $75 owing 
for taxes; $2,500 borrowed at 5% from his wife three years ago, 
no payment having been meade on account of either principal or 
interest; ea draft for $500 accepted by a firi without con- 
Sideration, falling due in 30 days. His private and household 
debts amounted to #600. 


The item entered on his balance sheet as cash included his 
personal 1.0.U.'s for $600. 


Of the book debts about $3,500 might be considered bad and 
the rest good. The stock was good except $1,000 which would not 
produce more than $100. The fixtures, if sold, would not realize 
more than $250. The only other assets were-household furniture 
worth $1,250 and residence valued at $7,500 subzect to a first 
mortgage for $5,000 at 4%, and also a second mortgage held by his 
bank aS security for overdraft. 


Prepare a statement of affairs. 


164 


CN: og SP Pie. ce Pay “= 
yrs BD hy 4 < meh 





aaa ‘ats Ow mIgort 
(rorten ice x. Pe OS. ane | .Y¥.0) / 


tot gSaometata 8 otscotg of tuseotem s yd betagupet gnioed — : 
eststes fIsol tawolfot ec od of ateuooos Sid batt voy «8x0t bat. 
tesrstat ,O@V2 aubievo tastetaé 4090, 010 tot beasatiom .000,65° 
ecibasdovrem ,0@S,i eetuixtt 7000.81) basa mo aboog ~ESly. bewi202 
5000,8¢ boworsed ssid tnsdotom oft dotdw mo ,000.0 sayorotaw at 
awort .008,1"% furttducb ,008,0L8 boog. bomeeb ofdevigoet eynv000s 
isistsfioo ac Aned yd Sten) eldsvisoet alLid (000,.8¢ bad ed of 
of moitibbs al .002,S% dase 7008.8¢ (000.2) to somsyhs ma) tot 
. treet bovioes igeiwollot odd Sait poy amisto bervosa svods exit 
,000,a° A sewo oafs Jasdovsem em? +088, [) eegew ;0d%% seust 30085 
.689,f3 D ,0@a,.SE % ,008.fG X 028.36 € ,002 S16 9 oars | & 
rot N to misfo betuqelib beiveesnw as ai stodt Das OOD, 
botiuner tnamassta edt tindyS .008.1¢ 


etl .OM MMIEORT 
(noitsn lose nO is a gD 


aid to teerea sonsind aiwollot ont atidicxs mosqmecT mlot 
100CL .0S emul bots ,eesntaud 


000 ,.° = A toe etotibsto yrhave ody ¢ Ss, oil uaa woe 
OOG.T ...-e4-6--eldsyed SILEG. | O07 pisvcensveud oe Ot@en Boea 


000,o-\...-s-(Statbreveo) Ane: 00.0 cs ceseseaeDiehone Bo6tc 
000.5. ss Bee = rele saa -» gone led Oval ea oboe aaee secatxit 
008 .8f%...,... ee eT OOF BLE ss es eereeeeeentstot? 


643 betitino Sen ax tant bruvot aew ti noscmon? uninolsa@ais nO 


aiiwo @°4 itner tot aniwo 08S :toode consiad ein wott aniwollot 


Logs sissy serdt stiw eid mort RB ts beworted O0G.S$ iaexst tot 
Isqiontig pertie to tass009 no ebsm need gafvsd Sasaysq of 
09 tuouti@ uttt svi botceces 006G tot Tieth s (tastoesai 
dot bas sfavicq atK .aveh OF +k oub pailisi .noissivsdisa 

- 0038 of Setnucms etdeb 








et hebulont daso as toendy sonstad aid do betetae mest ont 
| .008§ tot @'.U.0.1 Lanoe1eq 


bas bsd botebiencoe od srigim 000.53 swods etdeb wood ef 10 
ton biuow coidy 000.1¢ ¢as0x9 boog asw Asota sat .boog seer exit 
easifeess tom biluow ,bloe Ti ,astudert eT .00LG med? otom souhotg 
ewsintut Slodeaved stev eteses tedso vino emf .0CS? nads stom 
tatit + of ¢oscdva 008,°8 fe boulsv sonobiteet bas OcS,.l% dtiow 
ated vd bfod exagtrom Saooce s cals bas mb SB 000,8¢ TOI sgsgttom 
; etistbdteve tot yYslivosa 6s dasd 


sikh 


Gu8 .tsh 


eristts to dasmetada Ss cisqets 














173 
ROBLEM NO. 177 


(N.Y. C.P.A. Examination) 


One of the early exveriences of the firm of Gardner & Kes- 
tin, Certified Public Accountants, was to make an investigation 
of the books and accounts of Evans, Smart & Byford (which firm 
hac become involved in business difficulties and was compelled to 
stop payment) and to prepare from the following data a statement 
of affairs, accompanied by a deficiency account: 


Unsecured creditors, A $35,000, B $27,500, C $26,000, D 
$24,500, BE $17,500, F $15,000 and G $2,000; creditors for rent, 
Salaries etc. $1,250, of which $750 was preferential: debtors 
$42,500, of which $37,500 was good, $1,825 doubtful (estimated to 
produce $625) and $3,125 bad; bills receivable, H $3,000, 
J.94,250, K oe. 500, i $1,500; land and buildings $25,000, plant 
and machinery $8,500, stock’'on hand $5,000, furniture and fixtures 
$1,500, cesh on hand $15,000, sundry profits $37,500, sundry 
losses $30,000, trading expenses $17,500. Evan's capital account 
was $5,000, Smart's $3,750, Byford's $3,750; Evan's drawings were 
$10,000, Smart's $15,000, Byford's $17,500. 


Show how you would have prepared the statements required 
had you been employed to do the work. 


164 


. Nd AS hi Neer a 
i] a Vi n F ‘ bs 


-, 


e 




















“894 8 tombisd to mf eat to emia 
moitsyttesvai as odau of asw ,atnsinvoooA Oil 

. grit doicw) brolya 2 trem? ,enevE to etnwoss 
“ot Bbolloqmos asw Ste aoitivolt? ib eaanttaud mi | | 
taouotste 6 sf85 gniwolfot odf mort segerg of fn 
iTns0098 YOR, fotteb 8 Yd Seinsa 


€ ,000.aS¢ 9 ,008, 7S A .O00, ace 4. arte Ds rt 

ator "rot atot iets :000,S88 DP bus 000,856 FT .00G4' 

atotdesh :istinetaterg sew 087% Ho inw to ,0eS,1¢. 

ot betamites) {uttdvob 888.1¢ .So0y assy 0928, VES Boke: : 

000,88 H .sidevieos: alfid ibed eS1,.0 Snes {aso 58 “pou 14 

tnsfq .000,é8¢ agatbiind bas bast ;00@.i@ d ,008,S2 a 08S.a8 DV 
getutxit bas siutinw +000 ,€6 Smart ao: Aoose ,008, ag yvioninosm 7 a 

ytbasa 000 . TES etttorg ythave ,000,c1¢ baed no dase *008. | 

Snyvcoos Istiqso e'nsvd 008,818 aeeneqxe gnibsat? ,000,089 aseeol 

Stew aygaiwstb e’asve= ;0aT,é6¢ “a brotys .08°,.€8 a’ txeme 1000.8@ asw 
00a, *H atbrotyd .000,é1¢ e'dueme 1800.08 


batiupery atnsuetats ait beteqst¢ evad bisow NOY wordt wode 
-trow ot ob ot bayolgue seed YOY had 


nat | can \ ane 


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t 
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4 ay 
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4 i > D i J ? 
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UJ a 7 1 me ml eee a a ~~ eer 7 - 


PROBLEM NO. 178 174 
(N.Y. C.P.A. Examination) 


Parker & Riley, being unable to meet their obligations, 
have mace an assignment. You are asked to prepare a statement of 
their affairs for presentation at a meeting of their creditors. 
Some of the creditors are entirely or partially secured, the 
Security being a part of the assets. It is desired to ascertain 
the true condition of the assets with reference to realizetion 
end the extent of the deficiency with respect to liquidation. 
Prepare also in connection with the statement of affairs a 
"deficiency account,” explaining the deficiency shown in the 
statement of affairs. Following is a trial balance of their 
ledger at the date of the essignment: 


CaG0 Cte OMe eke MM OMNI, . 6 ices c cere sees oe es & 1,200 
Stock and material (invent. from vrior period). 12,000 
Reliance Trust Co. stock, 20 sheres at cost,... 2,200 


ACCUM Gee TeCCL VALS, secre vesspeces Reve ae pikes setd 10,550 
ey eT 0 is ce teele meas <p a ble wie We as 2,000 
Mortgage receivable (second) on 194. Pront Pt. 1,000 
Real estate (store pubsine Ber SS OMEN ea ede G oo a oe 14,000 
ee a eile alia in vin ns wide dle nl & Sina ha 4 + Oc Tee ee > 1,700 
Horses, trucks and Sernoas ‘(property account), 1,400 
SI ee ka an og 5 aS is oe as ee eR A Oe $28,000 
a tt MMe ene kh ain vk es eRe bk ne Ae eR ek wea 8 ‘ 7,000 
Mortgage payable (on store building and lot),.. 5,000 
ier Glee ele eeeioa «6 5 e 6s SS how bee 0 68 ae ere 20,000 
Ee ee oe ACS a a ee Cae ee aNat e oa eae Set 36,000 
SV a gt I RS, Rak ater gna es Fi ree Te Se: PP ae 1,200 
Sree ed ee Ss ate oe eles Bla ec Be a aa dig ois! Sch Dear as oh eh 2 ,OU0 
Pie Set Se OI so alee Sas 6 se eh ee le RN W ewe O58 960 
Taxes, insurance and build ing cepeirTs,. +s Pak, ad 1,240 
Géneral expenses,........ ON, a ee ae a ey See 2,650 
Pareer G GhYs CEL Ss iwiese ees Ras bad eek es Seheens's 8,000 
Haley's: COpltal ss. sa «5 Oh I ORE TE ee ee) arta ae a 4,000 
Withdraws ia, Parker, .saes-¥eenes Pes aie ate whi ote a & O00 
WAGhOrewele, Riley; «0's + ds cs ass ee a LEAS = PAY na ar 1,800 


The accounts receivable are divided as good, #8, 000, doubt- 
ful $1,500 (estimated to produce $1,000), worthless $1,050. Notes 
receivable are eStimated to realize $1,800; the second mortgage is 
estimated to produce $800; the trust company shares $1,800; the 
horses, trucks and harness $900; fixtures $1,000; store building 
and lot $12,500. 


Of the emount due creditors (accounts pevable) $20,000 is 
unsecured and $8,000 is secured by the second mortgage and the 
trust company stock. Tne loans payable are secured by the equity 
in the store building and lot. 


The inventory of merchandise om hand, which foots $5, » 000, is 
expected to realize $3,000. Other liabilities are employees wages 
$650 and accrued interest on mortgage $125. 


Ref. 15-3 164 





ave 


(mot darkmexe .A.deD «¥eit) 
% texisd 


reek in | 

to tnemetate 8 staqetq of bewes sts woY «tf yises ms obam oved 
-210dibete tiedd Yo gridsem & $8 Nolisinesst”d * Y @ifsits xiods 
ait ,beivoee yilsitisq to Yletgine 97s erotiosers ost to ome 
mistisoas ot beticsh gi t1 «ate@es ont to Jis¢ Tes ya ftucse 
‘gottessiiser of gonetsiet Mdiw eseaes adt to notttbnoo omzt ect 
 .mottabiupit ot Sosqee Atiw yomsrorteb eds to tnetxe sat Sas 
& etistts to trometsse edd Atiw noisoeanoo at osis ersgetl 

ent mi aworle yorsioiteh emf gniatsiaxs " jnuooos yonsto lieb” 
tient to sonsisd Letts s at gmiwolfol .atistis to tnemessive 
‘itmommpiess edt to eds89 eit ts tagbel 


~anoistsgiido tisdt tosm ot efdsnay gn-ed 








GOR £2 aces’ ceeveewseewenses,2ned i bas basd no sdead 
000.2f£ .(boited tofte mott «tmevat) Ieitesem Sas apeta 
O08.S ...,4909 $8 eetssla CS ,xoote .0D tauz? sonsileA 
O22 OL .vseaece ¥eelle eee ME gE Ene be ¢ 6108050000 ee emure 


000,5°" “A rouwas vn dacsledlenilead ts 668 » ty avis eg OSEBV LAGOON aes off 

000,f «+3 dmovl BOL no (Srooea) sldsvigost sasgstobl 

OOO, aE ic 4 Vee .(toL bus. gntbliud s1iosa) sfstaq iseh 

OOT +f EE ee eh haavlcintadcla: 

00a, Lf _ (tevesos Ytrecota) eeenred bas etoutsd ,aseitod 
000.8S¢ > evade os ceases Sawebescve ves Sldaesg 6laneosk 
» . 000,7 reer y is Lea be beh @ rida bevschue s0LGG¥S@ GARGG 
O00 .2 .., (tol bas patbiiud siote mo) sidsysq sgsattoM 
000 ,0& es+sadevenn wey Peer ec eee) Cee, ,a9es fotwd 

000.98 eee ee eR ere 
O0s ,i' ac wc 0 0 0 whe Bedi. GE TMMIMEMD Dee 'a tn 0) 'otrplaletalg ein aie ae anne 
002,s ees ce ce 0 ab uname 3)! a scand wares ain kale: 

oae ce necceees seu OMG os ees etQVOOMRD DR Ceetords 

ORS ~L see's ....,8ttaqe? gaiSciud bas eedstwent ,sexsT 

0635,S cieteaeoee abv wacewcovsesnceevs Go@ngane Jatened 
000.3 Te Re ee ey 
000,2 | ry 0 ee ee 
Q00,.& pe uee cs cael pe teile caw dese. pTRMERE (LORE oe 


OOS gL 1 | . » awk is vienna teemge waeee se > YOLLE satowerh dd iW 


etdyob .000,50 ,«boug @n bebivéb 948 eidavisost atavogos oAT 
(JBet0% .020,.1¢ aesinsxrow ,(000.L¢ sombotg of bosacitvas) 00@,1g Int 
Bi esgsario: onoDea andy -008,18 o¢sifget of betamites sis eldavisosi 
eit (008,ly dotada yasqmos seaurcd oct 0082 soubotq of botsmisee 
gniblisd stoge :000,.f[é eatutxtt .0C@@ eacmisd bas etours ,seetod 
rae 00@,SL$% tol bas 


@t 000,088 (sideveq edayosos) ezotibets 9b Savors sit tO 
eit bis e3geaitom bnoose aft yd betyoe@ af 000.0% Sus Ostysosau 
| Xiupe odd yd Sotusea ors eldsysq amsol sit exoota ‘rascnoo seutt 
. | stol bus gaiSlivud etote sas at 


hte 5 as ea es ae oe 
*@i ,000,.2¢ atoot doisw .sasd xe eatbasiotem Yo yrotneval oaT 


 RegsY ‘'eesyolteme str aotsilidert toiitO .000,88 egiiser ot betoeqxe 
| (Gilg ogsgdiom no testetat bewtoos bins 0€6¢ 


. 4 

‘ ; ‘a 

a, ' bol | wis i 
ee ; : a ap ee 


a, weet ee ss oe 





175 
PROBLEM NO. 179 


(N.Y. C.P.A. Examination) 


A firm which began business with $50,000 capital goes into 
bankruptcy at the expiration of three years. For the first year 
itS tranSactions showed a profit of $4,000 after $2,500 interest 
on capital had been charged. The other years showed a loss of 
36,000 and $2,000 respectively. The partners had drawn at the 


vate of $5,000 a year. The condition of the firm at the time 
of failure was as follows: 


eee COTE yi aes wisest tle ae cee Whe hae EER RS $37,000 
Secured ET tees eyo oils @ 4.3 st es eR Ak 30,000 


Ste. esse ee ee cu Rie Pale Oe we hen Ce oe ERY 1,600 
Merchandise (estimated to realize $16,000,...... 20,000 
Accounts receivable ($2,000 wncollectible),..... 15,000 
Real estate (estimated value $19,000),..-......- 15,000 
Machinery and plant (estimated to produce 

UN Ie 6 8 be eee alae ett, May ty Leah al ie tat Be A Nar Ge Gene: Se Se 25,000 
yt) eee tS tae wis ee Re AE er en rar > Dee ate 100 


Prepare statement of affairs and deficiency account. 


Ref. 18-3 
164 















evr OW MataOnt 


: La if : (tro ten tne xe »A.4,9 
| cami ii bepo 000, 08s. 89 by asonieud 8 
teey texit ot tol .eis9v nae 
‘teotegni 008,38% tests 000 eg to tt ’ 


Yo esof ® bewode ataey tedto oat Salemi ist | 
sit 3g marth bad atoasiaq ont fre 0G one & ea 20 ste: 
emiY odd J orrit et to modhtbnoo oA srsoy @ O ee 20 = 

rawoilot a8 saw StTuli®t oc 

ea end 

000,788 Setetseeeeseeerereeeaess aes q BEOFEBOTO 9 1yosanU 
000 .0& a oe a eee oe ee a ee ee oe ; 





ass ts sx0od at ni 


(000, 08g Yine goubotq of. as eew dud 






003,f - Pee ee ee reeves eee CoN gd ES a ee en paella ‘xr we ROBE 
000,08 wees. 000.018 os hfeox of & snitas) sudhnareaniae eX: 
000,e2 Be eresk saison clea 000, 28. of SJMNOOOA A : 
QOO,CL Miss. +..-., (000,018 eitew rg ioe etatas isof - iyo 

| soauborg ot firey: tneiq ons 
000,é2S ewe #6) 6 wee ee + « +p ia ed edits oe o¥. 
OOL eta nee eeaan eee a Spee RON hyo 


stowooog yorsioiteS bas atistie te Sremoteste singer oo 





' $61 


PROBLEM NO. 180 176 
(N.Y. C.P.A. Examination) 


The Parker Construction Company is unable to meet its obli- 
gations and is forced into liquidation. At the time the receiver 
takes charge of its affairs the following trial balance is pre- 
pared from the company's books: 


GRO we V2 5. VC ee ees 8 2S te ees Si owgs00 
ARO ANC. DULLGL Bem c sets oe ee ek eed oe ee 10,000 
Mortgage on land and buildings,..... a eee, ® 8,000 
Plant and equipiient, «....%5.> eS des een Bae 20,000 
Crecit ors, .a54 248» es AGA GN ee be ee - 59,400 
Completed contract account (losses),.......... 18,000 
Capital ys Sores.  ooge A  R e ‘ .  §0,000 
Uncompleted contract accounts (outlay),....... 30,000 
securities acquired in settlements, .....+5...., 15,000 
Debtors’ accounts for completed contracts,.... 6,000 
Be eh a ce Se = 6,500 
Oe eee ee AIT EL os he Ae as Ne Peta tee Ms ee bo Ge ee 2,000 
Pronto end soem (Geri ci ene?) ANG Alea aes as 9,400 


eee netteme = ee ne —_ 


$117,400 $117,400 


The sureties on the unfinished contracts estimate that a 
further outlay of $20,000 will be recuired to complete the work 
and realize the contract price of $40,000, and their offer to 
take over the materials on hand for $1,500, as part of said cost, 
is accepted by the receiver. Of the securities acquired $5,000 
is pledged to secure $11,000 que creditors, and $10,000 is 
pledged to secure $9,000 due creditors. The company owes for 
taxes on reali estate $100 and for salaries and weges of employees 
#.,200, which sums do not appear on the books. The company has 
discounted customers' notes for $3,000, of which subsequent 
advices indicate that $1,000 will be dishonored, and a debtor 
owing $1,500 on unsecured account has failed and disappeared. It 
is estimated that the amount realized on land and buildings will 
be sufficient to satisfy the mortgage only, and that plant and 
equipment will realize only 6% of the book value. 


Prepare a statement of affairs and deficiency account. 


Ref. 19-1 
164 


avd 































tevisoet eit smit ort tA | fe ™ 
to 6 
2 91 
j “he 


taxood at mort bars; 

002 ry ee Ey oy ey oaths 

OCO.OL' 6. + 0+ 4 tka sO bays 9 x eee a eee 

000.8 @ reer eterenscees  @QMtbLiud bas Sasl mo egssttol 
O00 68... dice torrent seeevecsees So9MGiNDS Das tasi< . - 

O0n,e4 Peers yy CE UR Hwee ees eeers gees cee bee SOREROEO 


000 . Sf « os'eia & Meee .(esaaol) tivcoos tJostiaoo botalquod 
: : ee ee ee ee ee oe or ce ete) 


000,08 
000,08 . . ae see (MB LtuG) atmuoo0s tosiinoa betelgmoont 


OEE) (ven an rosseep Gt ttomeltites af betivpos eslt twoed 
000.8 ++++-@Soatinas beteigmoo rot etnuooos ‘arotded 
003.3 ey ea TERT CROP eee teen ee teas enee SOBNOTHE - 
000 .S jth setteesvessvaces  ,@lsitstsm to yrovaeval 


GOR 8 aie sss, scree e(YOnodotted) eaol bas titorl . 
OOf Tite OOB,¢ . an sy 


ate 


£¢ 


& tects etemises atoertace bodeinitay add? no seitorya oAT 
x~row ot 9tsfqmoo ‘ot baziuest ed IL by 000,083 to valtuo tedduut 
od tetio tio Sus ,000,08% to aoltq toartnoo ont esiiest Sas 
13209 Disa To Iiteq ss .008.f§ tot basd no elsiretem edt tevo saad 
000,8% Datiupos aett inuese elt TO .tevisset exit ud betqeosos at 
ef OOO,O1@ bos ,atotibstos ou 000.118 ermege8 of beshelg at 
TOT aawo yasamoe eT .erotibets sub 000,08 atwo9@ of hesbeiq 
assvolgme to eegsw bas esitefse tot bas OOIt states isex no aexst 
Sat vrsqmeo off .alood eft mo aeeqqs tom ob amue doicdy 008.19 
treupseadue co tsdw to 000,53 tot seston ‘atemosaus betauooatb 
tosdeh £ one ,betenocath ed Ifby 000,f¢ fend ot¢so tbat sen ivbs 
JI .Sstseqqseth sme beliet asd tasosos Sbetmmeans ao 00é. I? gaiwo 
fitw agnibliud Sos basl mo besifser dnwoms ont Send SeFamitee at 
bas taslg tsdt bap ,yino sgeacttom ect yisitse of taelottisa ad 
7 -sulsv Yood ent to Rd yleo askfeer ilfw taemqiupe 


Jhvooos woelsitsh bas aristts to insmotata s staqett 


f-@fL toe. 





bas 


PROBLEM NO. 181 Lv? 
(N.Y. C.P.A. Examination) 
On June 30 Ward & Parker, merchants, announce their inabili- 
ty to meet their obligations and make an assignment for the 
penefit of creditors. 


7 Prom an examination of their books, supplemented by other 
information, their condition appears to be as follows: 


Liabilities 
Cedi to Pay alOOGurGd pn HOG. ce eee cAeeeeusbes Beweaess +. .DS1 250 
CHCELMONR, VAR OO CUTEST 2k ak a ee + tween eo eee Saeninn s 29,875 
CreGieerss Lully Secu Gaps «Fi cake ce ead. weet eee 21,250 
Taxes and wages of employes (preferential), ia sen ig ee 875 
Assets 
Cag .O0 Mang p.ne0 es ts anole. « wo Eg Pe aa fe Bibi 5 ole ae w £oF aS 6,875 
Ce ee ae ia es oe a ss sig AUR a ue leieee os Se arte ak Whig wilaix ihe  e. e 8. 17,500 
Bills receivable,...... penis o'er ens ahaa b= on lk ee te ore Greig Tas <4 :s ; 5,012 
Warehouse receipts and other securdties,....--eeceseees 55,000 
CT PUCUCOLE File eee. Pewee ewe ees Kucele aye ies 2 Spend 
Losses 
Profit and loss account, sundry losses,..... ER ER ee 16,575 
Trade expenses, current period,.....seeeeecreevees hee 9,250 
Personal 
Weree CAD) CAL ECCOUNT, CF Pere Peis ogee Oh eee ene eas 12,500 
Were eherecneal Apawinkes, Dr was eee. s Bad ens eT ae hae sa 11,250 
Parker, capitel account, CY .,...--: rr ee ee area ge ue es 20,062 
POTHGE DETEORSL OTAWiINGS FOP he aks 6+ veces eae eee es 7 10,500 
Accounts receivable show,........ ye ot Oey arte od meine opeoe 
Bad accounta peisecy.. .< BEG ss BGs biel oes SHE: ie OM. st 1,250 
Doubptiul acocunte, to. eka: A Se ee oe bs Sts SLATS OTs 750 
BEVGCTEd UkG PIGGUCS FOWL PH Hee eco ee ee eo eae ae 250 


|The securities are in the hands of creditors pledges to se- 
cure payment of their eccounts, viz: 


dn hands of partly secured creditorS,... cess ereenee cose $ 3,750 
In hands of fully secured creditors,....... Bre) ve wae Pe 31,250 
The chattels are expected to realizZe,. cee reece sses ome 11,250 


Prepare a statement of affairs emd a deficiency account. 


Ref. 21-3 
164 


AS Aes A 



















wes | 
(moitemimex »A, ded Yo) 
eifident tiedd sonvonnn ,efasdotem «tealzeS & S2eW 0S enut nO 










gi¢ tot fnommmiess ns slsm Das ecnortegt Le geom oF YF 
. | BT fo #itensd 
torte yd botremelqque ,exood tkexdt to nolienimexe Pa Rs 
-awofloct as ad of eteeqqs noivibmoo TOM 5: igsarrotas | 
as itifidaht a. VST eee 
et ee ee Lienstseershesees «ra gD@TUDORGl 9 @06 BOND 
evs,es ee cuaue + 00600 000 ee e400 Lae yitisq ,erotibero 
GOB IS cose cvescoeseseas cove vewsarasygbotsoo®, YLIUE <atotibetd . 
TR ry ere ... (isitnetstetq) ssyoignse to 89gsw bas eexsT 
-ateaad | kiss as se 
éve,a sere weoesane eee 7 soe NSU a tN ail san ees ba be * 60 ke ee ee 
00g, TL oneoetene_aetn #48 | ce GUE DL a badaels tr Oe eno te ceas * SORr Cae 
S1é,2 err oe ye eng oe & oy OE RON es Seem 
O00 ~OE bse e ree stees .,2ottkruoee tedte bas atgteoot gavonstsy 
O8S,¢ ediobine se oan Leste a} Ohba eeapaln Me gin pine oo 6 ekOd SOR STORE 
| @928a00 
eva, ol occa ucaveuscessg@9880L YRbive ,tmvooos #a0t Dos ghee 
rr eres eo cs ease, DOeTS™ Saeriwo .sseneqxe 9bst 
{snoatst ; . a . 
Ne et A See ee , phate sewnsiete «eueuuee istigsd. .brs¥ 
DOS.58 ” a bevases eee eel cacuecceeegaet@ ,agniwesh Isnoeted ew 
680 08 is cive ts «0s cee sepucevees TO ,famooos Istiqse teats 
SOR .0E « stl iew.tdawearee wevaseese 2 ,BQniws7b) Isnoetsg 7 
OOR e' adadtc eens ane ic ebeuaeen sop eWOe @LEST L092 atmuo9oA 
O@&, a eye oe Se 8 ee 4: esha Ok dae ba ecleaee vas iene ReRwOaemre me 
0e* e'¢)> 6 sere os G@somnnevew ts baw enne were se ces + ( GIMUOQOS iutsdu 
One fg eae 6.2 ole ad mw Oo > Gee ee. bie nin eae 10 8 a POR ee ot betosqxd 


-98 of soubolq stotibeto to abasd acid mi ois ag id bruoe9@ oat | 
‘siv ,atavoogs ttent Io Ineaysq evo 


ONT So Bc vasasese, rat . srotibeto bemuoes yittsq to abasd 
0@S,,12 : ils » eet ake .~stotipets betmosa Yilst to ebasd 1 
OOS. EL  aseawdiurstwmes ...yo8ileet of beteeqxe ots Siedssado sit 
.tmsooos ysastoiteh s bias atistts to tnemetstea $s etsgetd 
&«IS toh 
bat a 


PROBLEM NO. 182 178 
(N.Y. C.P.A. Examination) 
The Montauk Manufacturing Company becomes insolvent and the 
receiver appointed to wind up its affairs has a baiance sheet 
prepared from the books which shows the following values: 


BALANCE SHEET JULY 2, 1906 - MONTAUK MANUFACTURING COMPANY 


Assets Liabilities 
Cred of 0% .i.5 eee S i402). Bille payableistus-o% $30,000 
Bills receivable,$ 2,108 Accounts payable,.... 65,460 
Accounts receiva- Interest on bonds due 
VLE yee eee esses 19,740 21,848 Julyur ReOGyaent -s 2,700 
Raw materz rial,...-$16,200 Bonds issued for factory 
Partly manufac- site and building,.-. 90,000 
tured goods,.. Bate Taxes, wages, etc. due 2,500 
Finished wares,. »900 
Consumaple sup- 
PILES, «ee. ce BAO Shy G00 
Factory site and buildings 90,000 
MaAchiNeryijuns «x<- « $50,008 
Tools and appli- 
BIDS Pets ies anys a 7,000 
ee) ae iy &,000 
Horses and trucks 4,000 
Office fixtures, 600 69,600 ‘ ba a 
~ "8218, 650 $190,660 
Deficiency, losses,.... Te e010 Canital stock, sss sv. 2 100,000 
$290,660 $290,660 
= eS NC ee ————— 


The machinery, boats, and horses and trucks are pledged on 
chattel mortgage to secure creditors to the amount of $45,000, 
$6,000 and $3,000 respectively. 

The mortagees of the machinery agree to purchase it for 
$30,000 and the other mortgagees agree to take over the chattels 
in full satisfaction, which offers are believed to exceed what 
the securities would realize on forced sale. 

It is estimated that raw materials, partly made, and finished 
wares can be sold for $29,000, while the consumable supplies are 
not in marketable quantities, that the tools and appliances will 
bring $4,000 and the office furniture $500. The bills receivable 
are all good but 31,640 of book debts are uncollectable. Cus- 
tomers' notes to the amount of $7,000 have been discounted and the 
maker of one of said notes for A540 nes failed. 

Prepare a statement of affairs end a deficiency account. 


Ref. 22-5 
164 


Ay VO ate fe Ro» 













































ts ree 

ave S8f OM oa 
MELGORE, his 

(110 £3.80 brie x ane 


sit bas taeviceni wmo50d YASGmOw. 
feede someisd & asi acketts até 
:gauisv gniwollol et swoda- 


YIATMOO OMIAUTOATUTEAM ATOM - - 9086 «8 Yau raat - 






eseifilidail. ; ay 
PO0C0E Bac e sees ,oideyeg 0 itee | Soba oe 
984.09 soe ey DLIBYSG papers a BOL.S $.ok 
eub ebmod no taotedmt | 4; Sev tes tagoooR 
OG Se A0eL «8 3 yiut Sean GENS 1 wore Ppt oe +s 
riot Bt to? bouaat abnod. 008 014. oo LBE198 a Pedal 
000,08 «+ «of thbiiud ons efi2e By ~-O8 TUNSH vised 


o0¢ .S eub .006 «891 “.8Ve ,sarete ai 003,24 + +48Q0038 bets os Ca 
HOO .Gd » (OSTA ootetnit i Ae 

he y.., ee ee sidamuentod — 

Rees. as 008) even eee SOLEG 

| 000. oe ant ai tue pas ette yrotost 

‘ OOO ,.Uae «+++. VroninosM 

-ltiqqs Oas eae 
000,7 viniaiy « 96 ty CRIES iy 


OC0.3 eee 
000, afourt bas 898to. 


SRR BEN | ee 50%) aot aR et pine 
094, 0018 | - "983. 8ist- 
C00,00L,......-Mootea Ladies pReser +++. 29a protests 


oe eh aes ; 
633,0 aR) an? e 1g : f a . 
naar ‘ 228,00 38 | , y 


oe 


no Bexdelq ots exXoutt bas-asatod Ons eatfsod cig abie gales eof 
1,900,234 to trvoms on oF axvotisaroe etuoes o¢f sacgd Ton fotteto. nig. | 
plow gooqest 000.6% bas. men 
not gi sascotug ot gauze Weemsconm ers To a99ggst TON 
aflstindo edt xovo ealet of 29138 agegeation tailto ott Das po NTO 


jariw bssoxs of Seveited sts atetic doisw .nojtoatertsa Ifvt at 

.9isa beotot mo esilser Sluow aeitiwoes sit 

pscisiantt bas ,sbem yitxrs¢ ,eleitetan wet ssa betamitas— gt #2 oho va iv 
818 asiiqque afcsauumcroo art elise .000.05¢ 10? Sloe: ed 280 69TSw 

lity esonsifcas bas eloot sav Tadd .a6it idneuy gidatedism ai tom i 

elidavisost allid oxT 008 etuwtinmwi sobiic addy 5ms 000.49 aatsd- 

— gaud .eldssoeticony ets atcab sLood to 099.16 tud boo3 fis tS 

art Sas botmyooath neod ever ig (to dayvoms ont aed on — Oe 

alist dss ‘ot aston Skea ° eno To tea / 

- te woos cone tskt toh 5 BAS sciite To Ja cushed a & orscetl 


dd a 
PROBLEM NO. 183 


(N.Y. C.P.A. Examination) 


The Nassau Engineering Company fails and a receiver is 
appointed on March 1, 1907, who on taking charge finds the 
company's liabilities and assets to be as follows: creditors un- 
secured $59,100, partly secured $16,500, fully secured $13,500. 
The company owns real estate $15,000 which is mortgaged for 
$10,000; machinery and tools, $30,000; materials $3,000 and 
book debts $9,000, including $2,500 in litigation, on which a 
loss of 50% is expected; also securities of the value of $22,500 
acquired in settlements. of which $7,500 are pledged with partly 
secured creditors and $14,000 with fully secured creditors. 
There are engineering contracts in force to the amount of $60,000 
on which $45,000 has been expended. Cash in bank $750. The 
capital stock of the company is $75,000, and the accumulated 
losses on contracts, bad debts written off and expenses show a 
deficiency of $48,850. Customers' bills have been discounted to 
the amount of $4,500 of which $1,500 will be dishonored in 
consequence of failure of obligor. The machinery and tools are 
expected to realize only 50% of the book value and the real 
estate is appraised at $12,000. The cost to complete contracts 
is estimated at $30,000 by the sureties who offer $2,250 for the 
stock of materials on hand. Unpaid taxes and assessments amount- 
ing to $216 are discovered but no entry thereof appears in the 
company's books. 


Prepare a statement of affairs and deficiency account in 
technical form. 


Ref. 23-3 












eve as, 
{no FRR Aa. D iy lata 


et tavieost 4s bas alist “seer 3 


anit abr st eR tSsno 


anu etoTtiheto ‘ewoliel 3s ed: of 
iit , 002 ale 


: 008,E18 betsoee v 
r Tot begsst tom ef dot ev 00 500.2 ee 
bas 900, 5¢ eis tretam 4 

6 sotcdw mo cro ita bt kL mi vagy tts 

to agirituoee 08s8 ; ; 


008, S8% to svisv 9 it 
yitieq tiv Serbelgq ets 008.8% do Lew to 
-etotifeto betwee qilut at ie 000 


000, 08 ‘to truome & 
ett .0avg ined az desd -bebnomxe aged 
beteiuawoos ond ans , 000 ,85¢ ei SA srg 
ge wode aeumsgqxs bas T tro aettinw atded 
of batawoos th mssd even allid fexemtot2u0 -,088,88¢@ to 
"ms boron: teih ed ILiw 008 , 14 dotsw to 000s to om 
ers efoot brs ytori:msm ent szont ies to etul st to gonmen 
tset ont bas on lév stood and to Roc yimo asilser of bo 
atositnoo steiqmos oF F809 ei? .000,81% te beetetags ait %& 
eit tor 0@S,S8 catto oow es itotue git yd COO.CSe % 
 , Bower 19 eistresem % 


atnsngagaas Ss aoxss & 
ay yrds on sud betevooalb 91S ei 
.atood @ 





eFNNOMS 
eit mi etse qs tost? 


ai tnsoopn yore toited hee aristts to jnroametste & S3sc9 
-mtod 


ao 





PROBLEM NO. 184 180 
(N.Y. C.P,A. Examination) 


Under vressure of financial difficulties the Princetown 
Contracting Company has applied to its creditors for extension 
of credit. The creditors' committee has engaged accountants to 
examine the books, and appraisers to appraise the physical 
property of the company. The examiners and appraisers are 
given, as a basis for their work, the following balance sheet, 
as prepared by the company's bookkeeper June 30, 1911: 


DEBITS CREDITS 

Plant and equipment,..-.$150,000 Capital stock authorized 
Horse, wagon and har- and owtstanding,-... $100,000 

NOG & , a.a schsnenee « Ae ee 3,000 Bond and mortgage pay- 
Machinery and tools,... 110,000 able, 6% due January 
Shop and hand tools,... 17,000 Le LOLE) sow ime se stents 85,000 
Materials and supplies, 38,000 Notes payable,..-..--- 35,000 
Finished GocdG,..- «ese. 5,675 Audited vouchers unpaia 156,000 
Uncompleted contracts,. 72,300 Uncompleted contracts, 
COG aD Aeh has bs iene on 88 48,800 instaliments,..«..«#«3 45,000 
Accounts receivable,... 11,150 Dividend #6, payable,. 5,000 
Notes receivable,...«.. 15,000 Wages accrued,......-. 2,650 
Accrued interest on Interest accruedonbond 

notes receiveble,..,. 530 and mortgage payable, 425 
Stationery and printing 1,220 Interest accrued on 
Unexpired insurance,... 280 notes payable,.....-. 470 


Reserve for plant and 


plant equipment,.... 6,000 


Reserve for machinery 


ana machine tools,.-. 5,400 


Reserve for shop and 


VEG <COO A Gs weenie a 1,500 


Reserve zor horse, 


wagon and harness,.. 1,450 


Reserve for contract 


contingencies,.-....- 5,200 





ene ree oa 


&472,955 
Se a mee ee 





Se 


In due time the accountants render a report which, among 
other things, contains the following remarks: 

"The account finished Goods represente the inventory, at 
cost, of certain machines built under contract during the six 


DSULPLUS , . ++ corse rpeves copie |. 
$472 955. 


months of the present accounting period ended June 30, 1911, which 


the other contracting parties decline to accept, owing ta flaws 
and violations of specifications. he Accounts Receivable are 
made up as follows: (a) subject to bona fide and admittedly 
reasonable claims by customers, for unsatisfactory goods manu-~ 
factured under contract during prior periods, *2,600, (b) last 
installment due this company under contracts of the prior period, 
164 


OBL . | ASi .OM MaAIOAnT 
{no issniosxd Acted o¥.M) / ‘i 


awotsonitd et aeitiuoittib Isionsnit to o1esetc tobaU 
wotenstx¢ tot erotibeto ati of bellqqs asa yasquod ga itosttm0d 
ot etnetayoo0s beseyns sed eedtiomeo ‘stottosto eit -xtibere to 
{so teyag edt seistggs of ateaistqgs bas gailood sat en imsxe 
ets atsaisitaqgs bas ereaimpxe eT .(meqaied 96 to ydreqotd 
~tesde soasiad gaiwoilot ent , drow ~iold sot Sisad & as ,mevig 





a 
a 


~~ o 





= 


" FEL@L 08 onwb teqsarlaod a’ yneqmon edt Ys Detecetd 86 
: | STICEAD eTiaag aii ij 
besixondtuse Mooge IstiesD .000,0816...,cnemqivpe ons tas Is , 
000,00f2 ..., ,amibnstatiuo Das «tsi bas aogsw ,98t0l 
VSO Sysat tom bas baod 900,¢é : ecu ee ees ete sees 64 Oers xf 4 
yisunsl owh R28 . olds 000,0ff «..,afoo¢ bas yromidoalh : 
a ae veee SEOL o£ > O0O,0L «+«,efoos basd bas gods f 
pe ee) eS pee .eidayeq sete 000,88 ,aeticque bas eis ireytsl 4 
000,acL dbiegm ererouey bet ibuA @lO,8 ss canes, Sd00Q Soreings | 
~2toatiaos bat siqnooal 005.8" .,afoestines betefqmoonU . 
OOO, Gd | ..es.++,80nomlistant 008.8 ‘Ne wks she ee 8 6094800 ee * 
000.2 .,oldsyeaq .o% bneb ivid OGL,[f -.-+»,sidsvisost afmuoooA. 
04, osseree, DOstons @ogev O0G,GL «ss++--,9ldsvisoet aetol 
boodnobewtoos testefny . ~ mo taetetai bevtooA Me 
ese sidaysd egenttoet bas - ge -see,@ldsvisooy aeton 
mo Seet0os taeotetal O88,f anitnitq bus yrenoisssc ~ ; 
(Se ee .sidaYaq eaton 088 .+ +, 90netusak betigxent 
bas toslq tot ovrsseh 
600,85 ..-<fnesaginps tnel¢ 
Ytonicdsan tot evietsA 
608,é .. eLoot enisbam das | . 7 
bas qore tok evieash } 
| ES es A ». ~@Loot Saed 
,9etond Tot evieaeh 
Ocs.l .- S3antad bas moRgeyv 
Sostinos tot ewisach 
OOS, ......,estongua tines ? 
OAR ES sew teenwngee «+ aulqiye 
CPEs RS 
aioms .doidw troget s tebasx atastawooes att emiv evd at 
‘antamet safwollct eat amistnoo ,agmicdt teilso a 
te .vrotasvai oct atnseetcet abood Serlainit Jnwooos oat® ; 
xie odd paid tositnca tehav ¢ited eenisoem niatteo to «te0d 
foirw ,[£@f ,O2 emul bebae Softeq amitawooos taeaetg sit to adinom - 
avelt ot ariwo ,tqs008 ‘of enifees esitiaq gaostineo todso ony Ty! 
sis efidsy tee! atnvoosk off sanottsottioege to sanoitalotv bas \ 
| yibestinss bas obit aned of toaidus (s) sewollot ss qu eben — , 
by --untam® aboo, yrtotostaitssay tot. ,eremotavo yd emisio oidsnoesst “1a 






‘. test (¢) ,003,8¢ ,ebolreq tobte gait tostémoa 1shau berusost 
_ shokteg foitq sit to etoeitnoa tebay yasquos aids oub tnemilasent 
ae |" haf | a ae | ' 





181 


completed anc delivered, $7,550; the aggregate amount of these 
instaliments is due August 1, 1911, but is subject to certain 
guarantees which have subjected this company to fines of $1,500 
on account of defective work; these fines will be deducted from 
the instalments when due; the balance of the amount of $7,550 
will be collected in due time. The account Uncompleted Contracts, 
Instalments, represents amounts paid by customers during June 
L911, on certain contracts reaching a specific stage of develop- 
ment. The unexpired insurance premiums would, if the policies 
were canceled, produce $160. There exists no liability for dis- 
counted notes. The notes receivable on hand are indorsed by re- 
Sponsible parties.® 

The avpraisers report as follows: 

“The physical assets of the comvany, as appraised by us, 
would produce at forces sale: plant and plant equipment, $90,000, 
machinery and tools $55,000, shop and hand tools $5,000, horse, 
wagon and harness $1,000. The contracts would require, to carry 
them to completion, an expenditure of the following: material 
$10,000, labor $7,000, factory overhead $3,000, irrespective of 
general overhead. We are informed by the Surety Company, who 
have guaranteed the completion of tne contracts, that they will 
undertake to complete them provided this company will sell them, 
for $9,000, the amount of materials vhich we have estimated to 
be necessary for comvletion, and provided, further, that this 
company will accept in settlement, the cost to it of the contracts 
as they stand on its books at June 30, 1911, with 4% of the said 
amount added for profits. The balance of the materials and 
Supplies would produce $20,000. The finished goods are worth 
only their scrap value, i.e. $250. The stationery and printing 
are worth $10." : 

The books of the company show that the contracts in process 
will, when completed, produce $130,000. 

From the above facts, prepare (a) statement of affairs at 
June 30, 1911, (bo) deficiency account that will account logically 
for the losses incurred by the company and by its creditors, 
under the assumption that the creditors are considering favorably 
the dissolution of the company and the completion of the contracts 
by the gurantors. 


Ref. 50-6 
164 































EBL 


ageskt Ya tauomt® etanoigns oat ,; yDOTSV L199 
nisttes of toetdua af sud ,fL@L ,f teugwA oud 
00@,i2 to aenit of yusqmoo aid? betoetdua evan 
mort botoubebh ad Iftw soatt eaedd jatow evitosted 
| O0@8,T@ to tnyoms eff to sonsisd sat jou neny Bvt 
,~atoartae) betefamoont tauooos off omit oud a o9 
anu anitus aremotevo 1d bisg siavoms asneasi{et .Sde 
-qolaveh to egate oftioeqs & gainmoset atoatinoo misirts 
aetokiog edt ti .bivow amuiarstg gonetvant Seticxe 
«9th tot ytilidstl on eteixe ested? Qe sowbotq « 
wat vd beetobri ots basd no s{davieses eeton oft 48 
8, so itt. 
K' . tgwolleot as trodet aree ts 
.oy vot beelistqas 9s .ynsemoo edt to ateses 189 isy 
«000,008 ,imemylupe sasiq Sas Iasiq teafge aegotot Js 998 
" 4ee'tod ,000,66 afoot bast Bas gona ,000,c8$ aloot bas yren to. 
ytiso of ,otivpet bluew stoattnco edT .000,1¢ Seeman bas moe 
isivetan igaiwollot ot to etudibneqme as ,moltelqoo ot be 
| to svitosqaertr ,000,.8@ Bseritevo yrotoat 000, 7% redsl 4000.0. ey, a 
ow ,~yasqroDd Ytetwe edt yd bemrotat eta WW -beentevo {srensp 
Iliw yod? teddy ,stostincs otit to nolfelqmoo ont heestnstsug even ye 
(mont {foe ILiw yesqmoo ais bsbtvora ment stelqmoo of ealetzebaw 7 
ot betemttes eved ew dots aloitotsn to tewoms sf ,000,0) tot 
atid tadt ,tontiwt ,bebivorwg bas .molttelcmos Toi yiseeesen Sd - 
stosiinco edt to ti of tao. ont ,tasmelties ai tqeoos itiv bier red > 
Khisa ont to Rd cidiw .ff0L ,08 omut te exood ett mo busta Youd as 
bee eisixetem oft to aoneisd eat .atftotq 10% Sebhs Jnuome : 
Atiow sts 25005 Soneinkt off .900,08% sowbotqg Sivow eeilgqquva =| 
gniteixtq bas yremottatea oat .08S¢ .a.k ,oulev qetoa sleds yino 7 
a |  *,.058 dtzew eta |. 


ston bedauor 





aseooid ni a@tomrxtnoo sat tadd wosle yasqmos ode 10 axood ed? nie 
, .000,06f8 goubotq.,betelqmoo medw ,itiw 5 
te atistts to tnemetasa (8) stacet¢ ,8tosi eveds sat mort | lee 


yifsoisgol tnaycoos [fiw tals davooos yorsio fied (a) LOL ,0& ona : 
.etot ideo ati yd bas yasqmoo oft yd Bettwonk seseol ent sor 
yidexrovst amivehianoo ete etotiboro edt tens aokiqmvesa eit tebmy 
aforrtco> oat Yo mottefqmos eat bane yaaqmes eft to mottuioeeid etd 
| <stotaseyg ot YC 


— Be0S sted ny 


STATEMENT OF REALIZATION AND LIQUIDATION 182 
e PROBLEM NO. 185 
(N.Y, C.P.A. Examination) 


_ Messrs. Green & Sharp, having given the firm notes to a 
friendly company aS an accomodation, became embarrased through the 
failure of the payee and appointed a trustee to realize and 


liquidate. The following is a statement of their condition 
January 1, 1896: 


ASSETS 

Cash on hand and in bank,...... Likve ieee thes OOO 
Stock tod «eoodes sd whe wie « wes sesh nk 8, K tok, eee ee a 20,000 
Heath 16s tateyids Gite ce EE EE Seas al a a dg, tae eR: 25,000 
TRO Di POCA and ed cea ence ncea mae 5,000 
Book debts receivable (including accomodation ac- 

OOUNT ORES B56 C00) pans cw tes oo 00,80 wane 62,000 

LIABILITIES 

MOnrGReeG GH PORE  GHERT Oss ¢ io wdtie deere tet sc ia shee $ 5,000 
Mortgage interest, accrued to January 1, 1896,.. 250 
PORER » eacred das os 4 CeCe OReH HO eA Ges os wee apa xe ree mo ae) 
Book debts payable (including accomodation paper 

CE eBGVCE od AUU) ep aicennn cece eee Taito ae aan ae 61,550 
Bille BAR bes < one k wnses Rane st ek seas lew So Retere 1,000 
Henry Maxwell, special partners... .-csnsiesessnes 10,000 
wamuel Green, capital,...... eee Pree re ee one 4 20,325 
James Sharp,...... PPT +3 eee eee Pe eee Pe ee eee 14,0090 


$112,500 $112,500 





The following is a memorandum of the trustee's transactions 
for the year: purchases to complete contract orders $70,000; sales 
for year for cash $108,000; uncollected accounts $2,000; stock of 
goods on hand December 31, 1896 $10,000; bills receivable 
collected at a loss of $600; book debts receivable, collected 
$3,600, balance lost; received 75% in full settlement of 
accomodation notes, and paid cash on account of same $48,000, 
giving renewal notes for $10,000. he legal fees, interest and 
eter expenses peid on account of accomodation paper amounted to 

2,400. 

The following payments were also made: mortgage, with in- 
terest, and one year's accrued interest to December 31, 1696; 
taxes, bills peyable and took accounts peyable; clerk hire, wages 
and other business expenses, with allowance of $100 per month to 
each of the partners, one year's interest at 6% to special partner, 
interest on Green's surplus capital ($6,325) one year at 6% and 
the trustee's fee of $5,000 - in all $10,000. 

The special partner had an interest of 1/10 and the general 
partners shared alike in the residue of the netpprofits and losses. 

Gn January 1, 1897, the estate reverted to the firm. 
| Prepare (2) trustee's realization and liquidation accounts, 
(b) balance sheet of the estate at termination of trust, (c) part- 
ners' accounts. 


Ref. Za . 164 





sy rn 
OB. MOITACEUPTA QUA WOTTASTIAGT TO 
86r .0U MELIGOAL Ms 
| (nottan iment «AMS wD 
«5 of easton mit edt nevig Saived ,qred@ & ase) .etacoll 
edt duvotd? beasiisdes smsoed ,modtsbomooos as ss goo ylbasitt 


bre esifget of seteurd s betntoggs bas 1 ig to etiist 
toit ibaoo tient to tmemetste g ef aniwollot ems setebiupil 
aad : 


me ' «f erevast 

. BPHeca 0 ae | 

A elare, o au a wacle Oh EE o) by ¢ SD ok bas beet a0 rlaso 

900 ,0§ metas Qe pDERGIES Ale svc cope ely een to aoots 
oo0,.a& oe¢enees Ee I ce 

000,.é s<« ee eieee s;ee@ eee vonweve®d wok ee ees eg LOR LO0eF elit 


-o8 moltsghomooos ga kbu font) sidavisost sideb Acod 
000,88 Seer ee (eR seyeq to tayos- 
















SRITEITCARL 
M00.2-8 6.5) | eee +0 Ce AMER ee 5 oe .eesgeteseas set mo sgcgs toll 
08S .. a@8L ,f yrsunest of bortoos ,sestetai eysgtitoM 
eve oe ey @ eS 66S OO SOs 6 +e 2? we ends Caaulee eee oeeeenas 
| xsqeq moitebomeocs gnibulont) eidsysq atded Aook 
eeecta 86» > 6 CU MEUAE he's 5.2 waver eel O00 .80G ,9ONSG TO 
O00 , f ee a ceesvese- s op @iOated S212 
My. OT: ci) |: (Mh ae ori See ios wtrantteg Isioege ,ilewxsil yInok 
@S2 0S ve hbbw nee IE Iee Es sa ae be istigso .agetd Leumsc 
TOO, Sf de ea ed ease to. w+ @ Sv eeekes mele 60 ger somst 


O08@.Si6t 008 .Stis 
pawn mma Ws - ions poi 


ee 
pong ossie hes oe 


emoifosensy? atestewtd oft to mubasiomen s ak gatwolfot onl 

asise {000,08 arshbto toerinos stelqmos of :eensdotig ttsey oct ToT 
to Moods 7000.83 stauooog botoetiooau :000,8018 deso Tol Te9Yy tol . 
oidsvisoet eiLid 1900,01@ BC81 .1& tedmeoe@ bast mo abocg 

betoeticn ,alidaviesoet atdsh ftood ;008¢ to aaol & +8 betoeiioo 
to tnanslétea fut mk RAV bevisoot itacl eomeisd ,003, 
.000,33¢ omsa to tnwooos mo daso bisq bas ,eeton no cishostosos © 
brs tao sixi ,a9et {spel sf? .000,01¢ tot aoton iswenet gaivis 
ot betmuoms teasq moigsboriooss to tnmuocos no bisd ea et 

? ae * s 


~gi dtiw ,agsqd¢rom iebam ogfs etew etmemysq gaiwolfot eat 
-3@8! {5 tedmeced of geststat bswtoos a'tssy emo bas ,daoted 
Bousw .e1id atefo i:eldsysq etnwosos dood bas oldsys¢ ailid ,eexst 
ot dtaon cog OOL€ to somawolis ddiw .seaneqxe eaeniaud toslvo bas 
4tentisq Isioece ot RO ts taotedal s'rsey ono ,etotdisq edt to dose 


bas R35 5 tsey eno (ase ,ag) {stigs>s auiqiue a'r no teeretai 
.000,0L8 Ils ai ~ 000.8% to est atestentt silt 
fereneg edt bas OL\L Yo taeteint as bert temtisq faiosqs edT 


-eapacl bas esitoracten edt ‘to eubleery edit ni saits bet etentts¢q 
sori? off of botxevet ststes edt TOSI .f yrsumst nO 
,etnuoges moitmbivell bae moitesilset e'setauit (s) etaqetd 
«tise (o) ,feutt to moitentared ts edstes ont to teecde somefad (d) 
satnuooos ‘atom 


eae wie 


r et ae 
. j ’ 

4 a. i , i ‘ LF ig ' j 

> & a ~~ i - . 7 v9 * 


‘ : Pile’ tice ae 





PROBLEM NO. 186 183 
(N.Y. C.P.A. Examination) 


X, Y and 2, foundrymen, unable to meet their obligations, 
suspended payment Jan. 1, 1902, and appointed a trustee to 
realize and liquidate for the benefit of their creditors. The 
books showed the following assets and liabilities: 


ASSETS 

Leng and Dulldimeeoi ges wk ss ee os Sina chieee een Peta eaass ie. OCC 
Machinery and toel egan Gans s...» whe aha %  & LR NMEA ANAT S 2 oO 4 en 76,000 
Supnitune- and Ciachieey. 651... ein » le ele oa eed WSs os 10,000 
Wateriel s pndeBepyi tess «bp hies RG..5.4> PME bb wee 6 95,000 
Dido TOeVOLIRDLSe i wk A eine een 4 ve ee See a hh eh eK 15,000 
Accounts receivable,...... Sy are ae ae a he ee ae beeen) bbs wo 
Callie ain > «Seema eek oS OA. NG ee SS. PPS BES : 450 

TOCEL GSGGtMs sree « Bee cadens: sina & & Awe oo ore $435, 450 

LIABILITIES 

Mortgage on foundry aut Aas Lr yo Be gee allies A ar ie Eye ep pe betes » $100,000 
BIMLHOPSVEOL!e ey VR. es Ot dc ee ea ee i et. ie iid hee 
Accounts wavynebewe? .00919.9%. es a ie ye oe Boe bad ete 105,000 
EOWEPCES SOCTUCK GH MOTTAALE, ccc coer e kate da dhe renee 1,250 
Taxes accrued (estimated),..... SNA: (OR CR phe a ib a : 835 
ef ae) it > ee ee Nipha gintsiy eka she OY a eee eta Ri aate ete de © Magali 955000 

re ee ain Ws gal pins Sie Tee 8 ON Oe, 6 $435,450 


The trustee's cash receipts and payments during the year 
were as follows: 


RECEIPTS 
Bills receivable (outstanding Jan. 1, 1902),....... vague “OS £8,000 
Accounts receivable (outstanding Jan, Ly. LOOE) naccaseser 106,500 
RE BAY Vee BT ee eee re Shaitp ereta. eikt aia 5,435 
Bills receivable (contracted during year ee ere 13,500 
Accounts receivable (contracted during year 1902), aes g) 212,000 
Total TeCeipts pvsivs vs we « Pete tek ac re e's os $352,435 
PAYMENTS 
ee ea ia ga as as Webs robin pe weeks sly wih Co Gury cre ap hea §& 25,000 
MCU PE OVE OLE res a ee a SS pa oe Oa Oe ae Og te eee 35,000 
Interest on mortgage one year at 5%,...... ee eee ea 5,000 
SORES TOY tNe YESr 1901] ns eee eee a ensens re ae bie kb we 865 
Purchase of materials and Supplies,-+-. sever eseses euaes 98,000 
ee See eats Ck Wk die ois ee A aw Eee Oe as OR A Ee 135,000 
ROTC LT ME CRO NMED SG 6 vue ca Ce eka Ree ee eRe ee ee aes 45,000 
Interest on bills payable to Sep. 30, 1902 at 5%,..... ‘. 2,800 


TOUR. PAYVMEN TB) + ss eis has ce ee oe eee Tree ee -_ $346, 665 





gas a8f .0u M&IEOAT 


(noitentmex® .AsT.0 «¥eM) 9 | 

See on Te raet 

.emottagiido tisdt toom of sidsny nomytbagot «Si bas YX 
ot sotayts o botaioggs Bas ,SOCL .f gt oe q bebneqawe 
eff .etotibaro uted? to titemed sd tot otebinp bra asiisot ~ 
-poidilideli bas eteaes sabvollot esit bowords giood - 


000 ,2S18 ..+. ee rrr ae bast 
ee ee ee ee eae n coed bela ses oe J 64 0eyGSQG0 nan aes nennT 
600 ,.of eis eh deaaerede er ee eid Lax 
shah att once esd CaHeRE ERs. s Jas 6p ORAS alsixetal 









7 > 

te. * 
600 ,éf ro ccuvueceduss QURMEGE Dias « 60400 dUD eg OGM. OOn nim nnEE 
000 ,.éif eereerzeree @4 ee. Uc Reals 5 i= 0's «10:0 pig Ratan agtmuooOA 
Och eee en da Jal ose RE REG 0. bs eag anlage 


O&b .cobS ‘7? + @ TN IstcT 
RR 


SUITLIIGALS — } 
ee wa eee ues leveceucccgcvucas+gQg@imatg Ytbavot mo 9gsystol 





O00 , O04 

O00 226 eseaeseereveeea #4 He Ro ee rr Oe Te | afllid ‘ 
900 , cOs aes owe eevee eee vcgdeceéunges Sah te Aven. ea GOSCR Ie etnsoooA & 
oés,f e* ee A mo Hbeuvtoos sestetal ; i" 
ase Ay eed . oa ey ac ceevesecalDotamizas) bevto0s sexst 

COE oo owe eoveene oc wan sine tetas) 4 ead een ed ee. ay tena ) 
hee revegnasseeavens MOR ELidg ss Sate? ; 
ne sortase ; 


<aov ant yniwwh atmemyeq das atqiscot dese atoatauts oilt 2 
, : tawolict as o19v in 
8T4 LO GH Ye 


O00 .21-@ J.ceamadses ..,(900L .f «mal gaibanteswo) eidsvioost allld | 
OOS BOL avaseceeey (SOOL gf oft antbastetuo) sidaviesst atawoogoA " 
Gé6,¢ oe re pe ese evevte ee ee ee, ee vaseecaceen ev eg @OS08. 880 - 

NO@ EL 2. +. vevey(SO@L taey Baitwh betoettace}) efdsvisces eilié 
000,313 ...+-.. (SOL teey gaitud betoattsos) eidsvieoes atauoo0A 





-) 
G23 .S65e $epeaveeer+eea eevee es yy) Perr rperray. fee | Lag oT 7 ‘a 


oTMaMY AL m) | 
000.88 @ ore eeue ee a | eilid 
000 ,¢% Pe ee De ee rere er ee atnwoooA 
000 ,,é tied vceevessstbweeecss ghe Fg Yaey emo ege5i tan no tastatal 


Gae cig ddeoeeidee cele ey ee Ue Onno en  ts9y oslt tot sexst q 

000 .8e ob a HeRe Wk sesevacceae B9tLqquwe Sae elaivetem to esstiotsd 

000,cé!f eerteevr eee eevee ene ou le di dde eelon dela Get. @: -eene pei aa 
ah 


000, é-vs'o US dee u th wee 6.6 See cae te ose lees on oe SSSMOTO istened 
Q06.S ss. ee RS dH SOCL 08 .qoe of sldeyeq ailtd no tastetal 


B09 .OASE'...- «4-5. eit ev ethene ks aglow tt ht err 


‘par 





Other transactions were as follows: 


PELES OF CRECLU, «+ esas es ost Seas es Pee eee ; — 
Bad debts written off: 
ASCOUNLE oriocr to:TJan. Lj loog; ierhees cee. ~—6$e,000 
Accounts subsequent to Jan. 1, 1902,....-.. . 2,000 
Discounts and allowances to customers: 
ACCOUNTS DrioOr“Boeanw 171902... 6 ROR CYS r te * 800 
_ Accounts subsequent to Jan. 1, 1902,........ he OG 


Notes received from custoMersS,,- ++ reece ee ereesesane 
Notes given to creditors ($110,000 being renewals),.... 


Inventory of materials and supplies Dec. 31, 1902, 
cee pit fo 46 7 eee a re Veni gdaw en ee ds 


ree Se Ve Se or 8c @ 


184 


$335,000 


10,000 


800 


20 , 000 
180,000 


92,000 


The trust terminated at the end of the year and the business 


was turned back to the owners. 


Prepare realization and liquidation account: also a balance 
sheet showing the financial condition of the business at the 
termination of the trust. Accrue taxes for the year in the usual 
manner, i-e., on the basis of the charge for previous year. 


Ref. L4-2 
164 














O00 , aese | nets cece n ves Seis ain den? ¢ 5 tie = + £. 
TON Cee ee 
000,0£ 00,8 ooo vet a si .ast of Snot 


taTemot avo ot asomawe ) bas at 
ere if, Pe Pela BE re <8 of 0. tq 83 


0038 00& ‘i we see ee MOOL of -18T OF - 


000.085 axaresves a enese securing mash anaes el 
000,08  ..- (als wane t “Ny 900 ,OLL8) apy areie 
sited aus 





HOO, Se “s* ea o eee sh tateremagesnerseeen ss 
aroniesd eit ns 1sey oat to fae ot ta nogensnttes pe - 
~ervenwo edt ot dosd bearut acw 


eongind & o8fe tt#nyoook noidediupit bos noitsetises etegett 
sit te eeoniaud oft toe moktibnos Lstonentt ent giiworde pc 
Isueu ott at teey oat tot @oxet ouT20A eer ast ‘to moitaniozot 
.169y% avoivetqg tet egteto edt to alaad org ne ee9ed ,tONAGA 


eet Aaa 
has | 


> aaah ele Vos . ani : 
my Pus ein) 
~~ 





PROBLEM NO. 187 


(N.Y. C.P.A. Examination) 


185 


The Metropolitan Book Company, a corporation, goes into 
voluntary lioguidation and the directors of the company, three in 


number, are designated trustees in liquidation. 


Below is a trial balance of the Book Company as of July 1, 


1905, the date when its affairs are turned over to the trustees: 
2 Capital atock .iss.s<«: Oe ee 8 iccsis ee eS eee $20,000.00 
- GAsn, 2252.9 oe Teenie Sars er rt & 553.69 
@ O©LLiGe Puenieweew ees eae oe 4s Das le ee 14 666492 
& Meter aepoeivas.ye sess PRRs RR ER EY TEE oe 60.00 
SP AOS ree LS nt ck eed ete thee ene 26,1 00400 
6 Rogers & Co. moneys collected for their 

MOG Guley 6 46 + cane ee s« i 2a ale a res oe 14,738.00 
7 Notes payable,.......s. Paina a tk distant ont 8 2 FypOtasau 
S Accounts peyable,«ssesasss CO ee ree 4,197.22 
D> MSrGhAndise purchases ,..<. es cae cs de cess 27,404.74 

DUOMO RCUOIOL OO SALES, os eh sense ee ce ed ae a eee 8,045.35 

Se ey eae C8 Sibley & vs x eel ee Coin yaaa: Loe tobe et 

EAN PORE CEE ket aus e's na cow's e's jee Cheese BO 


w7 4,554.07 $74,554.07 


‘Value of merchandise on hand $20,183.86; other assets (items 


3, 4 and 5) valued as in ledger. 
Trustees’ 


RECEIPTS 
Tee eae WE SR a Fah oe hee xe CE din wh wae wee ols Pg ee ee 
WG CEX (OB NG7 Tie se Sek 2 xe ceca x's pre tne ey (ee) eee ae 
Office furniture sold,....- Bes Geos et ee arma eS te ai ‘ 
Accounts receivable collected,.....seuee. ye ih tle eee 
Additional collections for Rogers & Co. Lin tA aes 
sales of merchandise,...... St Nene FAR Cia so Cd een Ba 
Commissions received from Rogers & CO-,..+.-e+ese-eee 

PAYMENTS 
NGGER HAL, «ceva iesiecneds Terror. irre ret tt tere eee 
MeGeUNCe DEl0, ss sed as bees ee 6 Bee Se ee ee Os ee 
Merchandise bought,...... errr eet eee eee te 
BXPENSeSscescccss a ee ea eb eile 40 oy ace ge be 


Remitted to Rogers & Co. in full,......-...e- Gis a iia 


Accounts receivable not collected are worthless. 
the account of the truetees in liquication. 


cash receipts and payments are as follows: 


& 553.69 
60.00 
487.90 
22,872.75 
1,965.24 
22,090.70 


6,703.24 
$54, 735-52 


———— 


427,573.50 
4,197.22 
562.55 
5,697.01 


16,703.24 
$54,733.52 


Prepare 





aes val LOW MEXEORT | 
(coitenimex® .A.4.0 ot.) a > 
ofat egog ,mottstogtoo & »Yueqmol scoMlaueeesgias ox ot IU, nye ; 
ai serst .yersquoo oat to etotoetib odt bas molebivoil yrsinvlov P. 


notishiup ii mi seetenty- ‘boteng ieso ets ,T9dawK 


f< Ylut to es yrsqmod Aoof oa? to oonsisd Ietrt 2 at woleg | ‘ 
tgosteurt aft oF tevo bemtw Sie eriatie ast nestw eseb cdl pares r@ 





RO gO Ve wee e's e's cee deine ocoe4 bot ashe a 

a Oa, 28a §. bee ee bed Gagcee (dC Ree Cake bbete treet a 

SO .380, Lc uv ewe eee keds von s sche e gee dees esittOo s ‘ 

00.03 5 ween Cee kl CO. lal be eee ee eee ane a 

BR ESL, AS. visa heccvurasscases sp Q@LGQv e09% SINNOOOA a 

xigc¥ tot betasilos ayomom .o0 8 stego0H Oo Al 

OO .8Ev af Cee ee meee eee tensa nnes ee see NOOOS al 

me .ETS CS ss eUoa aes cdels chee e Vas bg OReRG Gie Omen) am 

>. i Sar TOL. Cree teem enev ewer res were SLIBY SG atavooodA 8 : 
9 | HULDOLLUS .cccnerev verse ces BORRMOTUG SalbnadotoM @° * 
4 C2.020,8 i. Pee ie 34 eee eetbnsdoteM OL ig 


fe. ad, Of ee Sh Pe ee ee PON re ey ee Rye ae 
08.886 Ps} ee ee eee Ree See -++,(tott05) ai nae SL al 


£0,966 0g ea | ee, 


amatt) eteses tertto 88. E8L,0S8¢ Saar no salbcadoree to euisv: ~ ane 
~tonbel mi es bowlev (@ Sas b 4s " 
cawollot es 918 atmemysa Sas etqieco: daso *asotautT 


| Ell TaogA . Hy | 

85 .od¢ i 09 660 6 004) 6 wid ale Wella a elaiee $14).0 4k a ee lee ae mo sonslsd- _ 

00,00 SOCCeeCer ee re eee eee eee ee Ce ee ny } 

BOs TOE 8 or ei Core eaedersrienr onsen vcewe gMhOe Sai Intuy SoftI0O as 

oT. $fs8,.83 cos eee eevereene negroes gD ad Soll oo gidsv ts09T BI NNOSOA A 

6S .é30,J/ ».-(ffut wt) .00 & etegoH tot emotfostios Lanoitibba 

OF ..0@0, 85 Cree rrererry oy eee ere ee eet to a9lsa 

AS .c0T 3 0 ale: Lie te se +++9009 3 819908 mort bevieost sttoieetomod | 

Se . ac COT SEL doh | 7 
2TUsMy At os | "i 


e OC+eve .TSé SOOM eee eM ew eee rete ete wwe eee es eee sees EST astoll \ 


vi Ss Tel.b ee ee tem eens er sneer eww eeewe sede sasene  Dleg etmyoooA 
ea een ceed eet ree eh se wmeNesie ee eee ae g CREMOO 92 tbnadotel we 
“2 fo. CSET R eee meee rhe eee eee wees eee hg AIBN “ec * 
i | a8: g08,2 ra she ante An ih »s-ceesesg tint mi .00 3 axegoH of besttimeHh 
Be 6 -Se.Sey poe Ault inoue a 
2) , “y i | ei a 
; estsaqetL .enelitiowr ote See asihoa — atihaetene: atnuoooA i 
“moiveoiupit at aseteutt odd te sre’ enc ra 


rie Pe 





PROBLEM NO. 188 186 
(N.Y. C.P.A. Examination) 


From the facts set forth in problem arrange, in skeleton 
form, ledser accounts and outlines of subordinate book entries 
ror 


a. The lietropolitan Book Co. 
1. AS turned over to trustees, ely 1, 1905; 
_&. AS closed after receipt of trustees’ account. . 


b. The trustees in lioguidation 


1. When business was turned over to then, July 14) 2905: 
2. When business was closed and account rendered. 


164 










¥! at sabetene ae 9BAOTTS me 
es | SStqeae xeod Pataca ot 


o 
¥ 






a ;800L .f yLo% ,eaeteuts 
— t908 tacetertt to 






_ ig /  80CL at elut red one 
|. -horebnet ‘ere do 







Pe ee oe aoe ee 
af ) RO RE aR Sah aia ye 
Vi) 1 Mae ae a ae re 
te Ea vi aye " ig aes h Aye 
> ee or 


i, ae Par il 


a a 


Pere 


a. g 


te Beds 
* J ie A 7 hi » : 





PROBLEM NO. 189 187 
(N.Y. C.P.A. Bxamination) 


Walter Hopkins, while perfectly solvent and doing a profit- 
able manufacturing business, had so tied up his capital in plant 
and materials that he was unable to pay his debts and was on the 
point of suspending for want of funds to pay for labor, and his 
creditors were preparing to commence legal proceedings to enforce 


a settlement. The condition of his affairs at this time was as 
follows: . 


BALANCE SHEET 


Liabilities Assets 

rete LO, hy eR Beit  PLENC ered ia see a» $25,198 
GCAVS Gills « «a some rete ale ef 50, 000 2 a PE le. Por eye rg RI Pa i 

PUL Wee + eee ees bs oie 4,900 Materials, raw and 
partiy finished,.... 40,400 
Finished goods, .’.. > +. 6,070 
Accounts receivable,.. Spe 
&75,130 $75,130 


At a meeting of creditors he said that while his plant was 
entirely efficient, it was all of special character and would 
realize on forced sale only the value of scrap, that the un- 
fTinishea@ goods would require the employment of skill and pro- 
cesses known to him only, and that while forced suspension would 
yield to his creditors not over 50%, it would ruin him absolutely. . 


The creditors decided to advance him a loan of $5,000 to con- 
tinue operations and allow him additional credit for materials 
and expenses. <A trustee was appointed to see that the proceeds 
were used solely for recuperation of the business. 


The subsequent operations under the supervision of the 
trustee were as follows: 


Purchases on book account charged to materials $5,100, to ex- 
pense, $12,000; sales on book account, $57,802; losses on bad 
debts, $300; cash receipts (loan from creditors) $5,000; settle- 
ment from debtors, $58,100; cash payments for labor, $12,500; 
for expense, $4,350; for plant, $600. Creditors, $42,030; Walter 
Hopkins, personal drawings, $3,000. 


There remained raw materials, $4,000, finished goods $22,388. 

Prepare (a) realization and liquidation account (b) trustees' 
cash account, (c) balance sheet of the estate as restored to 
Walter Hopkins. 


Ref. 19-2 
164 


| Ter C8if .O0 MaRIa@ord 
aa (noitscimex® 20G.9 .¥EP _ 
a “Sitotq 8 aniod bne tnevice Yltostreq sLinw aniigot tefLely | 
m6 fnelq mt dstiqso eli qu bolt of bed ,eesntewd Stitetostunsm sids 
4 Std mo @aw bas atdah ait ‘Sq o¢ eldane sew od fede eis ixstsm 5as 
‘2 ein Sue ,todsl tot yaa ot eonut to tosw tot gaibnegeue to saiog 
y  S89totne of egnibescorq fesal somenmos of otoo ae 8itotifeto 
| » 3S Sav Sails aint te atistte eid t5 Testioae9 sHP J teemelttes s 
4 2@woilot 
| | TIGHe ZOMATAT ae | 
a etergA aoitiliggig / 
BCL, act ait, ee te pie ve ae tes .tra lg 6&5 ,OSs "+e ode ee ees «+ +,870F 5913 
Os ne ee ree wey «:fgs9 000.08 BRR ee 
OB wst ,@leixetsM 600.4 top ce te ersncee se, BULOtHE 
OO},.0b ..., Dedeinit “ivtirsq 
OTe .3 *s@h002 hore init 
eS.5  . - .eldav tess: GSnuos9A ’ 
WP Oer.erg } OSL. ave 


CBW tneiq ein elisie Sane Sisa et stotibexs to anisesm g if 
| Bixor bas tetsereio Is f9eqa to Lis gay ?£ ,tasiottte Yer ivas 
“i Os tedt .gaton to ev iav om vino 9lae8 SestTot ne 9s iLsert 
; =9%q Ome {£Livte tr titearyolame grit Sifivoet Hivow #2005 Dgdeiney 
Hiuow to laisqeue S99 70% elinw ter} bine Vino mid ot awonet aseaes 
‘Ndotiloads min nice Sivow Ff .RO8 rawo JGa erotibeto ein of 5leiy 


poe? SF 000.80 to esol » min Sonsvos oF bebins& arotipero odT 
@lsixatem xor Tibers Ignottibpa mci wolis brs 2ancitsiagqe sunis 
Ghssoord sit tert $98 OF Setnioggs eaw setaurs A .8@9@naKe bas 
-csontavd eat te Meisisregqucet tol yLeLoa bees stew 


$f Yo no fe iv: aque ot tshrey qioitstsco treupsadve oat. . 
‘Gwoifot @8 atew setamtt 


pee OF 001.83 als trotam oF Degree Inusoos Yood no seagdosgyut 
Sed wo eenans iS08.88@ .tasogsa dood ne a5ise (000,SI¢ ,saneq 
=Sitissz © 000, 8 (\Stof thers Ort mBoL) etc isost Naso ;008 «Bidedh 
miaewe. Sle stodal tot einemyag deep (001.826 .arotded moxt tno 
Boetew 2050.536 .etot herd | +0000 .tasic to? (OGE.83 .oaneqxe rot 
: 400048 .caniwers ismostsq ,eakiqoH 


*BBELSS$ eh0en Sede inir (ORAS als itetan wer s9tisuet ot)edT 
mpesteart? (d) trsoone Scitshiupil bas no itesi eer (s) stsqer¢ 


OF POt0Sast @& states alt to tosis sonsisd (2) ,$nuoso@ dase 
-enidqoH iuetisw 


bar 





SB-CL stom 


PROBLEM NO. 190 188 
(N.Y. C.P.A. Examination) 


The Fox & Diz Company, a close corporation, became embar- 
rassed through the failure of a friendly company to wnom they had 
given their accomodation paper and a trustee was appointed 
wed. 1, 1906, to take charge of their affairs for the benefit of 
their creditors 


The condi tion of the estate when the trustee took charge was 
as tollows: 





Liabilities 

Mortgage on real estate, maturing Feb. 1, 1907,....-..- $$ 15,000 
INECTEE Es US ARGU ade po Os GeO 1 BEB Se ns wn ame Pas mnes 375 
Taxes due, sé pameeia Reta a S04 x 5% 00 Gite a ie ic ates Pat AES NER 210 
Book accounts payable,...ee. ses eeeeees eR ee hk 3,900 
Bills payable Per ating accomodation paper “856, O00 hae. 57,400 
Capital eS ee 2 co. od ashi os md at alten A Wie RPE Pia ie een 40,000 
Surplus.per profit and loss: account, .«...«- Be Ne dia iste, boi 3,987 

$120,872 

assets 

Cash on hand and in bank,........ Se pee iglaie sas ab cy orhp 8s $ 650 
Mecuienisee (EUCCK OF BOGGS), <6 0e¥ since ev oe sos ree hee 254310 
Book debts (including accomodation account $56,000),... 60,800 
BLALS i Feeel VALE) fee eaves RN yh al ee hee SPE ee rey ee 4elle 
REGL OSTATC, +s. wee. curs Adee ts ot ad ees were eats wee Bas) wt 39,000 

$120,872 


In order to complete contracts and so realize to the best ad- 
vantage on the goods in stock the trustee purchased merchandise 
to the amount of $50.000 and during the year collected $100,002 
cash from sales. 

The accomodation account was settled for 60%, the other book 
debts realized $4,100 and the bills receivable $3,600. Balance 
lost. 

The erate ee paper was settled by paying $40,000 cash 
and renewing $16,000, entailing legal fees, interest and petty 
expenses of 82,200. 

The other bills payable, the accounts payable, taxes and in- 
terest on mortgage for 18 months, were paid in course of settle- 
ment, and the principal of the mortgage was paid off at maturity. 

The running expenses were as follows: clerk hire $1,500; 
office expenses $1,000; allowances to officers $3,000; trustee's 
commissions $2,000. 

On Feb. i, 1907, the trustee surrendered charge of the com- 
pany's offices and paid over the cash balance in his hends. On 
said date there were also uncollected book debts $2,000 and mer- 
chandise stock $8,000. 

Prepare 2a realization and licuidation account, a trustee's 
cash account and a balance sheet of the estate at termination of 
trust. 


Ref. 2282 
164 

































TA oh, ai bos wieter)!) eae oe, Wea Ae? Se ee ee PED tg iter, 
a ; e a | ll he ty ms : A 
Sel . oe “on MEIEOM | 


(otters inex »AeG.9  «Y4%) 


Vapi esw eetesmre 6 bas 28 78K pe igaverndie 
to ditened ext 1ct stistie tied¢ to eytsdo sast of 









vr. « aeieiitderg 7 
. 000,41 & ........, TOOL .f del gaitutsm ,etstas Isst m0 8Q8E i 
eve +e eee oe y ae ee ts « OY a goOeL si cst Sub hs cain’ 54% ‘_ 
MS es ie ae om dea eS hb eae ere eae i 
Ae 9% ce ew ne eewe Se reses ee OLUBYSG pipet 
- 006,32 +s (000,088  Teqeq moktebomooos get tsi oni) 9 ig BY8g 
oe) O00 ,0S esc ews® (73 CRs ee 2 eS eo Ne ove we + DOTS 
P) 880.8 ot Keak en +14 + asa eaelitaoos agoi bas tétow tog sults? 
| : afesaa 
Ocd By ay BS Viele wie ee Dig basd no seet 
| Oe 4 a Ra eA cassesstcdautes cece (aboor to usova) essbn anos en, 
008,09 rr (000, Bey 10998 Mo iishoucoos aber atcedh wood fi 
Slicd bbe vue siv cits we e+ haga Cawlgn eles oleae s+ gale Oe re 
- 900, 0% Tape ane ety ee TORU ss Gud. vives bess > St nn 


P gee OSLS | | ae : ‘ce 


«bs teed adv o¢ osiltset of bne etosrtinos steiquos of teSt0 al: 
seibapdorsm heesdo te seteurt ent toote at zbocy emf mo Seatnsy 
§00,00%% betselios tasy si guitubh das 000.084 to ¢nwome edt oF 8 ~ 

,a9ls@ aott deso 
wood tepto act .208 rot belitee eaw tniv0co0s moltehoneses od? a” 
 sonsted .0 008,22 eldsvisoet allid ov dae OoL ae beoaliset pro’, 

*- 

fess 000,04 aniyeq yd beftten eaw recsq aoitebomooos saT 
yireq Das deerestal ,see% [eget gaifistas .000,31¢ gniwenet bus ’ 
008, to aeeneqxe ‘ 

-ait Das eoxst ,aidaysq atnsooos edt ,esildsysq effid resto sat 


) “sititea to gsaiyoo ait bleq etew  aidrroms 8f£ tot speytior ao seates rs 
i ‘UF ized em $e tito biagq esw 9989? tom edt to Leqionizg ot Bas ,snem - 
in ,006,{f% stid wreio tewollok a@ stew eseensqxes gainnutr elt 

A a'setanurt 1000.20 areoitto ot esomswolis 5000, 10 Seareate 99 Tho 


“moo aft to sztario botebast Tre oot surt ede ,TO@l ,l «del “0 ey 
: RO .ebasd atl nt somsisd sass edd t9¥0 5 iq bas ssgitto eae | 
- stem base 000,80 atdsd tood bevoaticons osis orev sted? etab bisa 

Bei: 000.8% wots sek an 
a, le*oe3 acd S ,tnv0o08 noitsbiunii Sas nofitssiiser s e1sqett 
‘to moitsniones is etsteo ent to teede somsiad s bas F: 


PROBLEM NO. 191 189 
(N.Y. C.P.A. Examination) 


The affairs of Peter Post, a manufacturer, were in a very 
critical condition, for although he had an unimpaired investment 
of $62,500, and his books showed a clear increase of $6,022, he 
owed his trade creditors $25,289 and had only $265 in cash and 
$4,062 in receivable book accounts on which to rely for funds. 
The rest of his business estate was tied up in the following 
chattels which he had acquired in an effort to keep pace with a 
business growth that has outrun his capital; machinery and tools 
$31,562 and finished wares $7,587. It was also necessary in order 
to continue operations to have inmediate cash for pay rolls and 
incidental expenses. 


A meeting of his principal creditors was called and as it 
aopeared that the business was well established, profitable and 
had a sure and growing market, they decided to advance him $6,000 
in cash for immediate needs and extend his credit in a sufficient 
amount to permit of the purchase of necessary materials and 
generally to continue operations till the present stock of 
materials could be mace up and realized on. 


In order to insure the proper application of the funds and 
credit so provided, a trustee was appointed to administer the 
finances till the creditors' claims were satisfied, at which time 
the control would revert to the proprietor. 


The subsequent operations under the trusteeship were as 
follows: cash paid for labor $15,725, for expenses $5,430, for 
additional tools $750; purchases on book account, charged to 
materials $6,300, to expenses $15,000; sales on book account 
$72,300; loss on collection of book debts $380; personal drawings 
of Peter Post $3,500. 


The unliquidated values at the close of the trusteeship were 
as follows: inventory of raw materials $5,000; finished wares 
&27,900; accounts receivable outstanding $3,382 and accounts 
payable $89. 


Prepare with due regard to the grouping, order and arrange- 
ment of the items, as best calculated clearly to display the 
facts, (a) realizetion and liquidation account, (bv) trustee's 
cash accounts, (c) balence sheet of business as restored to 
Peter Post. 


Ref.- 2b<28 
164 





eer | fer .OM MataORt i 


(rottaninexE .Asd.9 ee A . ae 5 































‘yrev 6 at crow ,teivtostuasm 8 ,teot t9t99 Yo atietis oft = 
tremteevai betisaminy a& 58d ef dguodtis tel ,moks Ln0° retrigs 

of 990,38 to sasotonit te0lo & bewode stood aia & B ,002,559 Ito 

bas fess xi @6St ylao bed bas 06S,e8$ atotkbeto ebars ein bev 





-abtut rol viet of Moise wo atnwoons tood eidavisost ai S00, 
maiwoliot ot «i qu beit sew atetae eeaniaud eit to tasr ont 
@ diiw ecaq qoot ot Srotte aa at bativess bad ef aoicdw eletitada 
- pioot bas vienicosm .Jstiqas eid avittuo asd tad Ayworg, eesnieud 
P@ebr0 mi yisessoon coals sew JT .T8a,%@ eotsw Beteianit bans Sad , L183 
- bas allot yer tot deso ofeibeami eved of amoiterego sumisaos oF 
| | : »eeseaneqxs Ietashioal 


ti es hos beliso esw e1cdibeto Isqionitg eid to gnivesm A 
bne ofdettiorw ,bodeiidstes Llew asw esenieud ont tads betseqge 
900,04 aid soasvhs o¢ bebiogh yads ,tedtem aaiwotg bas stve 8 Sed 
gneioittua ge ai tibeto sin baetxe bas absem etsibeomi tot daso mi 
| bas 2isitetss yisessses te sesdotmq oft To Simreq of JInvoms 
a. to Moots tasegrq scl? ILkd enoitsteqo eumitaos of yitetone3. 
| .vo pesstiset bas qu shan ed bivoo eisizeisaa 


bas abn% odt to soltssifeqs tegetq emt etueni of tehto al 7 
_ oct totelinimbs of betaiodgs ssw seteust s ,5ebivotq 66 Fibsto - 
emis doinw ts ,ositeitse evew amislo *erotibera oft Ifit seonenit 
| ,toteixqorg oft of txrover Sivow Lotinoo edt 


as s19ow gisesstautt edt tebay emoitsiege tmoupeadue oat . 

tot .032,86 aseacqee tot .aS%,2i¢ todsf 10% Steg Maso :ewoilot 

ot Sexisrio ,tavoo08 Mood mo agaanomma ;O@Th efoot fanoitibbs ~ 

_ teyoo0s xood mo esise ; 500,¢f8 esansqxs of ,006,3@ eisiretsa — 

 agniwexb Isncer)eq ;088¢ etdeb dood to mnottestiod mo aeol ;00E.ST% 
| . | | -008,5¢ Saot teted To 


| stew qideossiautt sift to saolo edt 3m seutey betabivpiing sat 
; esisw bodainit :000,28% efaivetem wer to ytodneval tawollot as 
gtnuooos Sane S85,34 onibestetue eldavieset atmuoocs {008,TS¢ 

i  488E sidsyeq | 


“SBNSTIS has tobto ,ariquote edt oF bxeget aub dviw ereqetT 
eit yelqaib of yivselo betslugisa taod e@ .emsti oct to nom 
etostedrt (d}) ,tnwoocs motdsbinpil bas oy ata (a) ,atost 
of bototest as eesnievd to teede aomaisd (0) ,etnwo008 dasa 
lt -teol totes _ 
SES st9f 
bat oe ie ae 


* a) * 





PROBLEM NO. 192 190 
(N.Y. C.P.A. Examination) 


A, B, C and D, partners sharing profits equally, decided to 
Gissolve partnership, and on December 31, 1908, appoint a liqui- 
dator and transfer all assets to him. He is to receive for his 
services 5% of the cash collected by him in the liquidation of 
the assets. The’ liquidator is also to be allowed the expenses 
paid by him in the liquidation of the business as follows: 


Clerk hire, e eo Dinas we & ££ Fe + @£@ eo He 8 @ oe . 6 Ss ¢ . *¢e¢ » s-ertrg? $1,000 
Rent, . . e * ° . . e@eessee*® . * . «ese e Sa 2 ££ Fa & © €@ DP 2 FF 2 £2Le 2 SF Qe 2 SS & 500 
MiScellancous EXPENSES jue .w sews wae women « eye aoe wk 700 


All the deots of the firm were paid and all the notes and 
the accounts were collected excepting $3,200 of worthless and 
uncollectible accounts. The furniture and fixtures brought $2,800, 
end the merchandise was sold for $18,000 cash. The balance pay-~ 
able to partners was distributed on December 31, 1908. No 
interest is to be figured on the partner's accounts or on the 
moneyS in possesSion of the liquidator. 


Prepare cash account of liquidator, statement showing ex- 
penses and losses in liquidation, and statement of the partners! 
accounts. The balance sheet of the firm on December 31, 1908, 
was as follows: 

Debits Credits 





VG Wi G ea TA RCUTGs , 94 6 55 de wires ¥ 40 Make tte ee $ 3,500 

MEXGHAMGLSES. LNVENTOTY » «o 0 sk Ade tae oe ee ee eee saee 20,900 

BO GOS ONECS) VE Lia aiaas 64 ow > ete dae Diiseeck e ie be ae 14,000 

AECGUBGS LECCE] VADLE. © + 64.06% sive eerie e Se ny akan het ai iy 38,000 

Unearned insurance premium a eae during 1908 800 

ABs ahd sey hee hi Saag ack aes ace eee > 8 dis rie 6 oes 7,500 

PS 7A ey ay AE EOE tee wry ee ee €& 5,000 

AGGCRONLS “GAYS LE 2 oc in a << s ae gat SG! blew etn a 38,740 

Accrued interest on notes payaole,........ win oes 80 

ACCTUGEAUAREGS, here) Abs Ae eo. 6 Slaw 5 Sa chamaanie’s eae 480 

Pie. GROUT Ae: edd stvisceaerike takes Bs Kewiate otlainis iso  @ 16,000 

B'S. aACGOUNnt, «cee with tilda sh ad abies ae antes alec Lene 8,000 

Uh CIOL ETE Pecan, o dheta/ls ‘grmicire: aucite. Sate 44° > ervidiaitate kes ales «se 10,000 

D's account, ..-.-+s0+4. ee ee ee ee eee aT oe We 6,000 
POURS, Pepe tes oe a A Se ene $84,300 $84,300 

Ref. 27-1 


ea eee. ie ad 7 a 7 Tl P : ee 
oer Sek .O% METEOR © 


. 


. 
; 
ty 
; 4 
" 
. 
; 
= 
' 


Ahan 


ry 
a 


— 





(006. .S¢ ssword asrutxit dre oust iaiet ed? »etayoooe 9 
_eysq sanéiad ect dae. 000.8289 tot Sfos esw ge thouacdot Sat eT. 
















" Ww iy vee i 


(aoitsnimexd Ae Ts 9 Ys | 





ot bobtoeb .yifawps editor gnizene arentisg Ge 
eivptf£ m tatogqs .80eL .L& cadasoot ao bas .qimert 
att tot eviesot oF oi oH | mid o¢ etoses Lip Te. 
“to motteabiupri ont mi mid qd betovlico daso say 4 
asensgqxs ond bowolis od of ovis ei totabiuoll oat 
‘awolict es sesntaud oft Bo moitebiapi£ om oe 
“p00, £6 OR ised 
ood a ey ey oe yy. ee 


Kot ces aveervedeed seer meee 19 COBNOGEA agconsilesaky 





























bus ooton ect Ife Sus bisg otew ark? ed to atdeb ont L4A De 
3 


bas ceofdtiow to OO&,50 Buksqeoxs betoaiflco sisT ed my 0998 
idistoe ifoons 


of .800f ,1o redmecat ae betudiziald eaw areatrsq oF eft 





edt no 1o atnvo798 BS 'readtag: ony a0 potuget od oF ak saetetai 
-,gotebhupil adt To moleaseaog ai @yoerom 
-*9 griworla tnometet@ ~toteatupil to Jasooos daso eraqgeta 
teventisq oft to toometsta Sas amoitsbiupil ai goceol bas aeaneg 
.800L .f8 tedmeced- mo mmkt af% To fegda esonsisd efT .admu0095 
lf ; 7 ?  teveliol 98 saw 
et toad atidad 48 ca ae Age 
7% O0e.& ca uk'beansle vee dau sis te CO2G0RSgRt G5 Mn Sean 
008,08 sseveaees cp oeewecsverrvss sttodmevak saibusdoteit 
O00 aL ee ee ues iran pra we oucpes ree g @lLGB¥ [009% eet off . 
HOO ~oo ev eae awe ee eee ede + He a ae ee pidsvisr2et atnauoood 
008 8001 pak inh qritigxe cwimerg sonsivent benrsenU 
00é,7 er aso 
oo0.2.§ a .d vlee bubaune hte ~ Cp eas ge aot of 
par. 6s ae ventceecesarosgens og SECBYSG BFCU0DOA 
08 3 secesvusee se  SL08¥8@ @otom mo Jeetosns beutooA 
“+ O65 he o' a) ei ak nS noe Ale: che buen liye inens ape Garee Gee 
000,92 ) age see cadlla a atbatie oleh ane intts help iene maaan 
' 000.3 js ee 20 We vile Pe eee «eS MNQD98 a'a@ 
0C0,6f eee aL yew pe ett aw  e  e 
OS eee seo ace datuilhie Sa Slat oie aikns sk keer or oo 
TT See EEE 
; Pra, | | {8S .toh 


PROBLEM NO. 193 42, //% Mh yo* 191 - 


( Nets C an ex Examination) fie 


ie WH i) 4 


The cirectors of a manufacturing company, before the clos- 
ing and auditing of the books for the half year ending December 
1, declared out of the net earnings of the company, a dividend 
for the half year, of 4% on the preferred stock of $100,000 and 


3% on the common stock of $100,000. 


There has peen brought 


forward from the last half year, an undivided balance of profit 
of $4,000 and after the audit of the books the trial valance is 


round to be as follows: 


TRIAL BALANCE DECEMBER 31 


Real estate and building, $332,500 
40,000 
80,000 
29,000 
82,500 
88,000 


Plant and machinerv, 

Patents and good will, 
inventoryodulyoljsss.... 
PUSGDREAR Gs wee wen ee vw ae» 

Ra ATGe cats seo iy hh. . 

COUT Fp oad ee se eda s 5 6,000 
Salaries general,....... 

Salaries menagement,.... 5,000 
Insurance, .%s.% As a6 ote oa 
Allowances,...... Se ee Gse00 
PKOLENt yaw GAG bus so as ‘ 1,500 
Discount and interest,.. 

CGN iN DANK gies cc cas ; 8,000 
BNVOG CEMENTS gc. ws wa aah Loe 
Miscell@neous expense... 4,300 
Book Gebts;.s...- Pelee amas 

Pfd. stock in treasury,. or 
BEAL T Bie oes ox 30 Bs 1,000 





Stock on hand $26,500. 


Preferred stock,..... $100,000 
Common Stock, seca ss és 100,000 
SH eSgas WONG wa. eee ee Pe ee 
Notes payable,......- 2t7;, 000 
Account payeble,..... 14,000 





$459,175 


From the above prepare profit ane. 


loss and income statement and balance sheet, giving effect in 
accounts to depreciation at the raté of ‘7- 1/2% a year, on plant 
and machinery, and making an allowance of 5% on the vook debts to 
provide for bad debts; also create a liability in the balance 


sheet for dividend as stated. 


Ref. 28-2 


\ (exo to ace tenet py to5 te 


ea0fo edt ototed .ynnomoo satiutostvasm & to 4 
| “tedmeoeC gnibas tssy tied edt cot siocd to gais 
Bbaobivid 8 ,ynsqcios edt io egninise ten oat to tuo 
- Be 000,00L8 to Aoote beti9ts te OF 10 RB To 4% 
a, taguore « ised asd etenT .000,005¢ to toote MOOS 

titotq-to oonsisd bebiv thnw ca .teey tilad deal edd mort 
8% sonaisd feist ods aidood Mas to diius sdf rotts bas 000,4¢ to 









sewollot baad has ot Sauor 


£5 EET RI ED Pa LAE ALTE | 
008, SES carts Liud bas otetes Isel 


WO00,00L9 ......aooce bexretert 0 
PO ROOL bes .ases sote nomod 000,08 .UTenicesa Sas stasis 
4 AS) esvces acces @9l8a §~000,68 , yd bdw booy has atnetal 


800,25 eesee od wk yist yvrotneral 
002 Sa vee seeeeoeses + SSSR NOTT 
200 . 82 + me aelee x 
000.8 


,eideyad aad.oxf. 
; ridsyae SnwoooA 


mee, tS: 


owe mea eawe ee ee Be 4 Pee 


iudeag_ee be TOGHE ¥ 
» 4809 


Oco,I£ *** 


800.8 sos, SMOMeRSiSM BoIrslac 
evs. be sen ble ema weg SORE. 
O@8,a oceesenes sees, BOOKBWOLE 
O08 ,£ a oes #6. 00,0 ew 
+ “OBS. i tastadal Oas Javosard 
000,48 ET ae elaed ak deed 
O00. a. ® a We Cee el 
Oiyh -.9ensgue oucensl loos it 
OOO aR J sea wee ees oe ee RISD BO08 
000.2 «.Civessid mi) gootea .btg 
GOO pi) eles lennt a thts ee 


«ee lSTONS3 Bolxis ied 


ee Eee ee te as 
‘baa tf tore Es 


Ststetq sveds sit mora 60a. ae basd wo 9538, 
tt Soa tte arty is # toed 2 90nsfed Sas Sasuetsata smoont baw: agol. 
SnSic NO ,189y & AW oS to etst edt $8 moktetoerqeds oF atawooos 


OF gtdsh x- od sit co RB +6 sonewolls me gnivem Sas ,yvreniiosm bas 
Sensisd eit at ysilidsil s s#eero oale etdeb bad tot. 9h fvotg 
| shetsta a8 bnebivib tot. tears 


ys bas 


$-88 tet 





=o: 





192 
PROBLEM NO. 194 
(N.Y. C.P.A. Examination) 


The Black Birch Spool Company decided to retire from business 
and dissoive tiie cornoration. To that end-a meeting of the stock- 
holders was called for Seytember 10, to consider the determine the 
advisability of such action. The stockholders decided to dissolve 
the company and authorized the oresident and the treasurer to 
perform all necessary acts to accomplish this end at the earliest 
possible date. ; 


A trial balance from the company's books taken at the close 
of business, August 31, showed the following amounts: 


Land and building,.... § 55,000 First mortgage 6% 


Machinery and machine VOMOSUS diva ee’ cv oh ae Ope 
COREE ca ere Oae Re ELLY, 554.000 Interest accrued . 
Shop end hand tools (in on above hones,--.. S16 
store pratd. 14. nenes 5,000 -Accounts payahble,.... aL FOO 
Furniture and fixtures, 9,700 Reserve for depre- 
Raw materials end ciation of Bldg.,.. 5,200 
Pe SLE eC TEON 1 ws see 10,550 Reserve for depre- 
Aceduyts MPeveivable,.... 23,400 siation of Mach.,.. 8,000 
Cash in bank and in Reserve for cepre- 
SOG ane lk wheat te hkg DU ciation of furni- 
ture and fixtures... 5,100 
SUrQLUe pes reg eeseae ss BO yOUG 


Capital stock, au- 
thorized, issued 
ont and outstanding,...- 60,000 


gi 49,770 $149,770 





‘The lend and building were sold to the mortgagee for $50,000 
as of August 31. The entries on the cash book between September 
1 and Seotember 30 show the following receipts and disbursements: 

Receipts: land and building $21,234; machinery $25,340; shop 
and hand tools $2,100; furniture and fixtures $3,700; raw 
materials $7,950; accounts receivable $23,130. 

Disbursements: Accounts payable $21,700; miscellaneous ex- 
-penses $1,530.20. 

Prepare (a) journal entries reflecting the dissolution of the 
company, as at September 30, (bv) statement of realization and 
liquidation that will show the percentage payable to the stock- 
holders on their holdings. 


Ref. 44-6 
164 


Ned fa é 

. | Dex Ol LTEORT Tan 

ene (wokten tent vet. D a ie 
sis 


ic par eey 

iter tad saat atiter o¢ bobtoas yasercod fad € 

| eleota edd To na. toom a bao tect of .m0 bts tom : 

GMs sfimreteds ost rob fenos of «OL and a 90 . 

Sviowath ot bebtoss ersbloxoote eal ; 

ot tetvesott sft bus tneh ies ont fie f 
Feetizes sit js dae aisit caer re ot ata (tsa 


o 
oe, @@0t0 ost ts motet alot eran ot. ott estiiiel 
: tatayems nafwotlot ont bewo sia lS tevgak oo to 












. "a anendrom ¢erth  000,.caée e': asap tbtiud « Dy Axe | 
EM OS Soi ee aes BORO entdoanc Sas yrenisosi 
a ; SsurTran8 tea soratit ~O00.6 crereenenes ee sy B£O it 
SS Rl 4 aft eanod evods M0 ii) aicod base 
oo OOY-.sS ror og OERAY ‘Bu admuooSh: O00. wales eae eae ss vie'e One 
— -o1q95 Tol SvteasHh. O00, jsentinatt pag grag iar? 
menos .<c - 3=Ssi«ywy’iw we BHLA to Nokiats | bre ais tedom wat 
/ “stqoS Zot s¥tSzen “QGE (OL. «4 Mae ks BBs ty? 
i OOO , 8 bh auto au 10 A0fats 005.23 oe ed .eldsvisue 
ae. -397095 tot aV19 291 at bre ous ak ties! 
«ints? te coivats O86,rL et cane 2), 3 
OOL.e OSTHIXIT OAR otue: 
Bac A Sig's) eine ; io ee 9 BULLS tue | i 
. U8 es org ’ Dad tread ) : an | “A? ¥ ¥ BS 
gat: bowaat ,6ss frors a ye, 
Me 200,08 ee. Bt t brs aio Sas 7 ir pa 
Bey Drs en.se Pie areas } 


@00,002 cot sezastxonm erit - oc HLo08 ere. steht tw Baa Sad ant. 
 tedmetiyes meswied wood deaso od no Balbldne ed® Le tanga i es 
hs radnemsctydata Sms ateiscen sn iwofloi off woe O6 Kit moie tow B ba 
pode 7055 .eS2@ wrenidosm (SES. £82. guibliind bas Soest sade ig0 oF 
wor [00.86 sotvixit Sn8 erutintwt (COOL ~a¢ @ oot bapel t bes 
) .OS£, 886 elfdsv ieses atnuooog, | 088 ay 4 “@latzetan 
“x9 auosnsifeoets: 1007, £88 eldsysq atnyoook raditemsarude id | ; 
a : wOSe 08%, Lg 896N9T i 
SAF to moituloseis ot arivosliet seizes isawot (s) eteqest 
bas mnoitssilest to taometste (d) «Oe tedmwetqss fs as . oo 
-ug0t%o sat of sidaysc SoReEEt ont wore Iliw tad) nottshéupsl | 
: ; (Sen khlod tiodd 0: ax 










| ‘26 har 












193 


BRANCH OFFICE & FOREIGN EXCHANGE ACCOUNTING 
PROBLEM NO, 195. 


(Neve CselsAe Ekani ination) 


The trial balance of Jones & Smith, Chicago branch, shows Dec. 
1904, the Pollowing: 


Home CLM Ceres Ge dese cee sce 


2 Eh ge) Ci rn ees 
a iw » ow. vinimpawiaie sine oeGte othl $2,500 
CHESTS aly a aes 6 as own ewe wed ina Cale vy ob otatetn ate be HIN SOOO 

Pere es Tak ek oe - e sde wee hy WOO 
MOPEDS O se soe ee see eee eee. ipl acinar a eae 5,400 


#5,400 $5,400 
Inventory $1,000. 


Draft the necessary journal entries to close the accounts on 


the branch books, anda the entries to be made in the home office 
to make the. boots agree. 


Ref. 


18-4. 


9 el a me 
QHTRITOODA SO\AHOXE WOTRROE & He rT 


fy i: | | 80 on MEIEOHS 
Ne - ’ Pi we 
a, (nots en tex #A0TD aa 

; ‘ae * ; 


» ytloniontd ossoldd eg tne & e900b ae 


‘ 
\ 


.«daky VU eeedes teas acon 
rates coisa eeg aaa ths 
end oe es nes deamases do's wie g MUM 
RNAS MR RR DOR Da pte a 


i ee ee ee ed 2 


1 rue we : 
ae 


-000 at yotnemT 


Binvooos sit eeol ot eotutne faniuot vameesgen ott Stent shay 
mo emod sft at obsm od o¢ mebrtep ont Sag .siiood slonatd eng 
n° | ; + 98'B8 soo? art — singh 


i 
rt 





PROBLEM NO, 196. 194 
(Illinois C. P. A. Examination) 


A company with its head office in Chicago and its factory at 
South Bend Ind., conducts three selling branches in New York, 
San Francisco, and Montreal which are supplied with goods from 
che factory, the invoice being sent out from the heao office, 


The branches keep their own sales ledgers, send out monthly 
statements to customers, and receive cash against their ledger 
accounts, which they remit weekly to Chicago. 


All branch expenses, including salaries and wages, are paid by 
the branches fom petty cash accounts, kept at a fixed balance of 
$500.00, by draft on the head office. 


The following information is supplied by the branches at 
December 31, 1915, summarizing the transactions of the previous 
six months: 

New York San. Fran. Montreal 

Rents and Taxis paic, .«-.« ¢ 200,00 $ 178.90 ¢ 75,00 
Sales for 6 months to . » 
Dec. 31, 1913, on account 
Salaries and Wages .»« « =a 


12,500.00 11,800.00 10,225.00 
1,650.00 1,520.00 1,600.00 


Returned Sales. etl: 200.00 100.00 BE «OO 
Allowances to Customers 50.00 40,00 50.00 
pac Debts e e * 2 icS e 90 60 * 09 


e * o « 2 a * a 


Gash Sales . . Wat a he 250.00 5,080.00 6,100.00 
Cash Receivec from Customers 
. y pasbousew. 10,260.00 9,150.00 
Hestoera, sulyoi, 1915’ «+ é 5,820.00 6,140.00 7,240.00 
HOwters, VSG. O41, 1LOlS . . 7,660.00 7 elds O00 7,075.00 
Petty Cash on Fand, July a 1913 500.00 500.00 500.00 
Petty Cash on Hanc, Dec. 31, 1913 500.00 | 500.00 500.00 
Stock, July 1,-29135 BES ahaa ice 3,450.00 3,020.00 5,650.00 
Goods Received from Heac Office | 
Factory * Ses we ole ome ge goUU,00 31012¢0.00 10,550,000 
Stoce, Dec. S51, 1916 eer ae 4,300.00 4,720.00 4,500.00 


Ledger Accounts oN 


«fe “eS 6 8.0. @ 8 oe 


° 
e 


From these cetails »orevare branch accounts as they should 
appear in the head oft "ice books and draw uo a final general trial 
balance with branch profit anc loss accounts. 


164 






280L OW maIaORT 
(nottontoext oA «7 4D ef eed 


oi vacj on) a * 
38 Ytosost ett bas ogsotdto ai soltito dsed egk rigg 
<II0Y wo at eeroneed antifse soe LUOIOD e¢. 
MOTT eboog Agtw i a ots cotdw Leersno bam ¢ 
*99LT%0 Oserl ect mor’ tuo tnee anted e9tover, ont 












virisnom gro Sroe eTensel eefse mvo stott qoet aed mt orth Mf 
TS95el vtedt tenksse deas oviecot Sis ,eTemoder ot etrnomets ce 
; — 10BROETD OF Yirloow simon yors Hottn ¢a: a 








YG DHisc ove .eogew bas esitelse yntoufont eeenstxe dona LLA 
to eonsisd Sexk? s ta sqset yegnucons 1289 (tec mort eodonaid | 
3 s@OE20 Sod oct AO #tath yd .00,008g 


38 coronatd at yd beklcque et Toll simotat gatwoffol ett 
avoiverg edt to enoltosenans Sid gat. tenes icy. ff tedmesed | 


| ractdmom xte 
feotinoM «svt a wxoY wort ye 


Le 
- 


ee 
i = 
wr Yo 
; 











00,é9 + 00.875 00008 #€,. . , + -9f89 atxeT See edaon 
| | ) coer °° 8. Seeders “agers Om 
00,048 00.00L 00.008 rs + 4 + 5 4 a8 hs® bemeuted 
00,05 00,08 00.08 " + + B8%OnOS ero OF BeomeworlA 
00,08 OC +-83r a: ee tk) a yee Ny 
60. OGL ‘ a) 00.036 6 G 00,049 9 ° ° . > eolee 
: t 


: z ° ) ead 
fala) i : MO etenotesd mot Sovicooen dea 
CO.06L.8 00,008.01 00.088,0r | ; dead 


| . ‘ * 8 ©, « S2ROR5A teabsy 
OO.OB8." 00.0Mf.8 O0.08sa . 2 ° » SfOL .f vLut .esotdeq ~~ 
00. ave, 7 WeeeyY COCR [LOL LE .98d .evoddet 
00.008 00.008 00.008 6£0L .f yiul .Snsd mo desd vttet 
00.002 ) 006008.  ‘O0.008 . SLCi fh .96t gM8L MO. desd ytteg . 
00.053,.e O00.088,2 00.083, ; <donse. 


ie Nal tub CLOL gf vEut, | : 
| S9i"°O S8et mor? bev 99987 ebood 

00.088 OF 00,038 OL ON Eee . P ‘ weotost 

00.008.8 OO.08T A 00.006, 4 toe Sl a LOL .L8 .907 Moose 


| SfLrore verlt es eienooor comeid Siscer ofkades eeedd mony 
fetus Lerotes fLankt & ou wah bee 200d S9itta heed oft at nee qs 
sOfa0208 eeof Iie tiocg Ronewa dé¢tw sone so 


SOL 





PROBLEM NO. 197. BASIS 
(N.¥. C. Pe A. Examination) 


On January 15, 1896, A of New York sent to B of London, ace 
count sales showing net proceeds due February 15, 1896, $17,500, 
remitted 60 cay sight exchange at $4.82 for balance of account. 


A hac, on November 15, 1895, invested $5,000 in a demand 
dreft, exchange at $4.85, which he remitted to B, and on December 
15, 1895, he hac further remitted to B a 30 day date Graft for 
1,759 pounds, »i6s .Sd., exchange at $483, drawn on C of London, 
who owed A $9,000 on open account. Interest to be caiculated 


eles (360 day basis), Loncon date 12 days subsequent to ‘hehe York 
ate 


Prepare account current as rendered by A to Bs also the ace 
counts of B and C as they appear on A's ledger, 


Ref. 1«5¢ 


a — We) A 
id 
eer «TOL. .OW MEIGONT 
(nottentuexd A 64.9 6¥L) 
“On .toOhnol to & of deree %t0Y well to A ,O08L .3f taust 0 . 
008, VL ,808f ,8l vrsiidel stb ehoesorg ton getwore eelse totes 


Tauoo9s Io eoneisd to} 88.85 ts Oamedoxe tigte ysh 06 bettinos 


: Srameh « nt G00,88 heteavnt ,C06L ,oL teodmovoll mo . ber A 
tedmece’ oo bas ,&@ oF bottimer el pio kciw 28.39 te ognacoxe .tIacb 
f01 Sierd otsh yesh O8§ # & Ot battinmo+ gweddan? hac’ on ,8@OL af 
gfOOrOT to 0 mo awath ,88h2 te egmarloxe ..b3.20f ,e5nv0q eat, £ 
hotelsaing od oF teet)Sste® -Tavoses meqo mo 9000,e@6 A bewo onw 


HaeY we of tosupeedus exysh SL etab nohnol »(elesd vab 032) de 
0 at 69 


wok evs cele 72 ot A yd betebmor en taeriwe Invoeosr sisqetT 
. ~togbel e'A mo tseqas yedt es 0 Sma & to esauos 


sGel . ton 


par 


PROBLEM NO. 198. 196 
(N.¥s Ci PyoA. Beamination) 


A New York firm of bankers, doing a large foreign exchange 
business which involves numerous transactions daily, desires to 
change its system of accounting so as to show the prorit or loss 
on exchange at the close of each month. The details of one 
month's business are as follows: 


Sold 
G156,748 sterling at an average rate of 4,89-1/2 
268,500 francs ¥ a §.12-1/2 
169,500 marks u 3 94 


Bought and deposited with paying agencies 
B100,000 sterling at an average rate of 4.85-1/2 
2eC,COO franca , u §.15 
150,000 marks ey ‘ .92-1/2 


Paid at paying agencies 
By the London bank,£95,000 sterling 
i Paris " 225,000 frances 
, Berlin " 140,000 marks 
. Describe a convenient method of showing in U. S. money the 
prorit on this one month's business, making the necessary journal 
entries, and preparing the ledger accounts affected thereby. 


Ref. 10-4. 


PRCBLEM NO. 199. 
(Nav. ©. Ps Ae Examination) 


The A. B. Banking Co. of New York borrows £20,000 froms 
62D. & Cov; London, ‘for’60 days at 4% , money ‘being at 6% 4n 
New York. The rate of exchange is 4.87-3/4 when the loan is made 
and 4,88-1/4 when it is repaid. If the brokerage is 1/32%, cable 
charges $15, how much is saved or lost by borrowing abroad? 
(Interest on basis of 360 days to the year.) 


Ref. 13.5 


164 


‘ ' : ‘ 
ui re, > ar 5 i 
A = a ¥ e 4 r 7 - + 
; a * a ms! on ae a 
ts ae 


(ar 
































; 


eee  .8@f 50m Measont 
el ala. ee a 

| (mottoatowxt vA of 60 6¥MP | 
eanadoxe mg torol oyral 8 antob eroteredd 10° 
od eottesb ,yiteb enotsosemetd evoiomun Bev' 


eaol 10 shiotq edt wore od @ Oe gatiavodos | 


eso to elisteb of? trom dose to scolo ons 
| | . gewollot es S%5 #85 


Q\1+28.5 to ager egatovs a1 ja ackinede gay, 8 
e 


CleOh Ri 2 onstt 008,238 
| : - ‘ esteem §=O98, 23. a 
2) ge a ry . - 
a aelonege gniyvsd nitty bedieoges ons taigvcl 
Q\fs28.b to otet ogenevs as te. goiliede OOSE . handel 
| . » ie eons 009,058 
. ine OOO.O02 


S\f-Se. " 
# setonoar aniysq ts bisd 
gntftedes 009, 710d,aned sobrot edt yd 

eonevt OO0,css “ ekrad : 


exteam 000O,0af “ atiteh y * 
edt venom «2 .U mk gaiwora *9 hontem dnetnoveos = edisoeed . \ eam 
stn¢non oxo aidt mo Sitotq 9 | 


faniwot yrssesoen ond aotian eeontaud | tt 
-Ydotens bedoette edarooos swesbol sit qniveqety Drie ,2otasne 


wdaOL TOR 


o£ .OM MaIEOAT 
(aottentmexd ak ot oD eel) 


emox? 000,063 ewortod ztoY wel To .09 artisingd of «+ 

at %o te anted yerom . RY gs aveab 06 tot ~mobrod 6 
ehan ei asol ond meri B\EHS.S et ognectons To ets? ont. . 
afces ~ROE\E BE egbtorioud ocd TD ebisqer at ti moctw 3\. 
Shaoids antworiod yd teol tto hevac ef doom worl ,oL 

| -(.asey ont oF eyed 055 to atesd mo | 


ie 
it 


hor 


PROBLEM NO, 200. 197 
(N.Y. Ce Pe A. Examination) 
A New York company doing business in London, received the 
following trial balance from its London office at the end of a 
fiscal year: 


TRIAL BALANCE - LONDON BOOKS 


PREMG Fi sisie. sis's LOPS eeeeee«hl00,000 
Accounts receivable, ecewseeusvere “15,5000 
Accounts paya@bleys sess tse Seeders % 35,000 
POS So, a chk ele ea eel ae wit et a he a ot 10,000 
LECCE. Niassa wae ale a eee de oe 6 100,000 
MerchonciSGiccaanee su we wee ews geen © sataygO00 
New cYorlo jaf Pies Socount senvcrerree 135 , 000 
Remittance SOCGUHT 1. ccc sec vees « 60,000 
Cash ONG. DEC Ban ove were re eds «+ — 5,000 


%270,000 £270,000 








The New York books showed as follows: 


| TRIAL BALANCE = NEW YORK BOOKS 
bepltadiiatocky iw. PRs aed é 


TASHA, oe Rae aes ee Pe $1,000,000.00 
Bateantes. 2. corgi atl Pe PIAL R, INS TB08 POCO 00 
HOV SEO OOS Pew ole he Pe ells 6 656,100.00 
TEIN Cry SOMITE, acids Welw Mb oee oe ely : vl thea 
EVIE OU,, Palele Kole’ Me vis Fis ote cee gated seve ¢ 10,000.00 
Gas lis aiie se od ol Si nS jem ee ee a0 goles. 00 


eet ee ee 


$1,291,712.50 $1,291, 712.50 








The remittance account consisted of four 60 day drafts on 
London for $15,000 each, which were sold in New York at 4.85-1/2, 
4,86, 4,86-1/2 anc 4.86- 3/4 respectively. 


Make such journal envives as are necessary to iiucorporate 
with the New York accounts the results of the year's business in 
Londen (conversion to be made at the average rate of exchange of 
the four remittances) and establish the new balance of London 
office accounts so that it will agree with the London books when 
converted into sterling at 4,87-1/4, the rate of exchange ruling 
on the last day of the year. Show also trial balance of the 
New York books after closing. 


Ref. 14=€5, 


cer 


out hevtooot “qmobsrod nt event 


6 to Bao edt 38 ahah 


. BHO08 noaHor = aM JATAT 
000, 


| 000,2° 
000,88 2 


008 son aOR 
(aoteecinsnd of ot A “Yo) 


a a ed 











Ween nereece ses 6am dae! 


000, OL Rarer : 

O00, 0OL ] / Daly diate 6 0 1o6 wr OF OAL OS ase Oe 

000 OS jibe eke cwkee 1 0e) er 
000, cof ) : Geb ees ces ethVOODs SOrTTe | . : 
000,03 spa duh nos oe sapere oonndd 108 | ' ay 
900.8 Sia os sev nenas aga e ener | ' a 
900 ONS 000.0884 | | | | a 
peot for en bawole extood Sage, Se ae an 4 
} | 


enood xaOY WER ~ ‘ROUATAS — 


Boi: wa PW * * 


..elvote seatge 


00,090,000, £9 » seek Os seam ew gee ms FF 8 
56.000, 003 hi 0 IIE 4 
OO JOOE. O09 9 weekeeeere uw edfOOos @OL226 eae mo. 
Oa.ar67,fe$ . Vesbebeenee ese nee oom eoned tien ae 
7 i O00. 900, OL View * sen ess * © * , eel ea ee } t 
0a 820,28 ae ee ae ee il me 7 i 


92.Si 125,12 08. SLV LOS 8 ge 
neater 


ct caliaeaenmmniael 


mo et tenth yab Od ctot to beget arioo +nnsooos 
Sloe ewew dors fyy 


_S\Le88.8 ts Ato¥ woll mk 


etAtogToo.. ae yitseaeoon ats ge 26%. 
etivest aid etavooos MroY wel onli 


acd ta gbecn 9d 


mt coonteud abiaey odd tO 
=o egradoxe to ofst Ih TOV" 
 gpobaol 


rracdtw exlood nobnod any dstw oot 
etsy ods > 
‘farts oes worde 


pert Lut "$e" so to 
adit to sonaisd 


icon act S 


yo gonelad wor arts deifgases 


soneds ime eat. 
dose 000,cha Xo? nobrod me 
\o 080d pe a S\i [-08.2 ‘ 38 : a 


Ss te, rr aig te ok one ovate Ome 


st mo betevae9) } mobdrtol a 
Set Scoala sot ert _ 

a BELY nos SOLTIO: (7) hime 
to¥S.2 te aniitods otek eo 
~aney ond 2o a8, te : 


sanivolo xottsa edo 





en 





PROBLEM NO. 201. 198 
(N.Y. C.P.A. Examination) 
A company is formed, under the laws of Mexico, to take over 


and work certain mining properties. At the énd of one year -the 
company is found to possess 


Bee LATS , + cee wre ee ee wae a peleians nee Le ae .» $484,675.48 
Balad ners ‘arid SwOP Ovens y aie else ele ie eal Me BPs i ape? 20,499.76 
Pa TOY fe ilate Seleleie ae teeeie 10 Wwe ce eo cre i Pee tO; Gle~6bG 
Cash OT HANG “AA or ig ee hess ee eer en ew ne ee ees st 24,612.50 
BiMWer WNL rake eek eww s cca ene b ena ddnnnes ened 85,209.50 
CREATES CIE a ree eet a 9 Aisa wale pn ler at alin ts aie wea wi aatata wane 13,680.00 
MeWCHenC SG vias am 4 oie we ale ies e's a Feta ten Raha ie eee oho aha ee a 5,420.80 
FOS ss) Ae rat se Ole fe lainaiio's' ooo wera eo pia wheks giehetahanp — 679,20 
The company owes 
PISO PCIe ys eee sie skis es Pera Aedes es ise aerate oe Bk 0,890.12 
On account of PREDOLLS ys eee tee so ele as Ore 400.00 
Note Gue in six months,with interest at i oe Usb ag 25,000.00 
The capital stock (full psa Eo She ols GR dt) RU ee eg ea 500,000.00 


Set up balance sheet. 


As the greater part of the capital invested in the undertaking 
set forth in problem ts Tvsnianed oy citizens of the State of 
New York, a&@ corporation is organized under the laws of that state 
to acquire a majority of the capital stock of the Mexican company 
and thus to control its afffiirs. The capital is fixed at 
$200, O00, all of which is subscribed for and paid in at 120. An 
issue of "$200, OOO in 20 year 6 per cent gold bonds is authorized 
and sold at 110. The new company purchases 4,000 shares of the 
capital stock of the Mexican company, par value $100 per share, 
Mexican silver at 150. At the end of one year a dividend of 15% 
is received on these shares. The taxes and expenses of the 
company are $8,640. : 


| Set up a profit and loss statement and balance sheet, assum- 
ing the value of the Mexican dollar to be 50 cents, gold. 


Ref. 17-1. 


7. 


—- 1 att tart ie -? eT, en - ¢ als , ' “ee 


t 7 A 
















Ber 08 son WeIEORT ae 
(motsentmexs vA. SEQ 


f9v0 eat ot ~ootnell to ews f edt 1tsbny de to" 
ames anich: ono To frre. ‘ets SA .eettreqoxy 2 
aebee ) 


| 7 aay : : a { ‘ 
biies bebe ie) ee ped 4 
ar, cea ,0s etree ens ee eee eeares en ¢ CINOMOVOTGM i . 
88.818, 23 eee St eee oS 


08,813.58 ee ee ee ree rae > oo) 8 ai 


ie Py 13) MSs ee seeianeamh ty a~ o>. .- en 
AY arr’ 
09,;083,2f 3° died eee 
08 .084,8 : CP RAPED NEO REARAY Oo oe eee ks bee or 
Of, QT) ; eee ee ee 


Sf£,008 .c 2 a 8 Mego 


06.008 eer ester See he Uaipa hs. ++ sos. SLL ORRRe to pane ray 

MOLOOO ES inca tn ahd $8 deenotai “tiv, edtaom ake mt aud Stor 

ps abate pw (eee g eae caveats (BE sq iit) Moots Isticss ed? 
~tooce eonsied qus tea 


| anites ebay att of boteerat dabenéo Sit ie frag qoteexg ant BA «a 
70 @dat® ent to ends ivre YF bende treat a neitotg nk perch poke gee, Aa 


etede tedt to ewal ont team bestneato ot soLtstogyvoo a a 
YAsgnoo aesoixeli edt to woote {sttess adiz to we Ltot sn igtianaanen' fe 
ve bexfl ef {attqso ext .ortsite ett fotos ot ead bon 9 


MTA .OSf ge ak bisq San tot becivoe seb ait dotdw %o fia. 

heaitordiue at ehnod 5fon Froo «eq 5 rsov OF mt 000 , 0083 << . 
ot To getsde 000.2 seesdouue; vasenco won oi? Tae oa, Loe 

2 tate tea O0f8 sutav 180 e VABGMOD abo teeit sit 10 aoote fatiqss — 

R@Lf Yo hnehivip s IS97 9X0 to Sno os tA .OCE Ys Seville meaotxen ~ 

ang to ae Ona exe oriT BoTare 1003.68 oa0 ps po ef 

Sat RS 





Saga a= 


-nueee , dooce Sanhial. Son sromedste szol Sne tft. a or tos — 
+ofog hier 06 ad of saifoh 130 xed odd te bili edt pe 


AOL 





PROBLEM NO. 202. 199 
(N.Y..C.P.A. Examination) 


A French merchant having a debt of £10,000 to liquidate in 
London in 45 days, desires to know where it would be the most 
advantageous for him to purchase English money, in Paris, 
Amsterdam or Berlin. 


The market quotations in the respective places on a certain 
given date reveal the foliowing: 


Paris Prs.. } 
LOMO OM DADETS SUS Ly, sarees soi 0G. SLE GCF s s. Boacic Jess 6% 
Amsterdam paper at & MO. ,.+essses Se eee ge. 205 and 4% 
Berlin) paper! ati Gi mor ss us oo Ms. Oven hd Gor 121-3/4 and 4% 

Amsterdam 
Guilders Disc. in Loncon 
Oe re eee MONUIS 2 esos Ree ae ween os OR Se 6% 

Berlin 
Reischmarks Dise.«in London 
BO, Be. DB. MOBENSG ox ws't'7 28... Ws 5. Obrien Pals 6% 


Prepare the required:statement, ignoring all banking charges 
' and selling commissions. 


Ref. 352.6 
PROBLEM NO. 203. 
(N.Y. C.P.A. Examination) 


‘The following is the trial balance of Oliver and James, Agents, 
Buffalo branch, December 31, 1912: 


ew Biwi wi fire eed wan lances. bbls eri icterest as. $2,500 
ee ee Ss che cea edly ee aN cele es ke es re $3,000 
COS et Oke kaw whew kek Babee bee ee Pk hale ales 6 av ecole 64900 
PEDONS OGG 069-93 eG GSS SRES iM ABS SS «CULE SSS : 800 


PerUuBetmOLss BO CCUNTS STS TG a TG SSG RG Ue es eee 3,800 





%6, 300 $6, 300 
Inventory $2,000. 


From the above data make the journal entries to adjust the 
New York books. 


Ref, 35-35. 


164 


eer 480808 #ATAORS 
(notsantnext “Ghee. Xe) 







nt etabbyptt of 000,0f.g%0 3088 8 a rerioien 
teom sat od Bivoew $i avatw worat ot voutdanel ya) , 





eatied at .yenom dei fend Besos ot mid to | | a 
. +s E88 0 msbhrios emh : 
: 5 
» EER ISS g mo geantg svitooqast odd af enottatoup t oct ) 
radiwoklox wit 4 vet odeb movig 
; BT , : a ate ‘ ag 
Ra wear eVS.88 ae ds cdeee vse seare date anette ye qogse »Hriol 
2") Hers 30S ob one UMS BO Ee oe eed «Ole & 3s T9G8d eb 
=) bas D\SefSf recesses eetterseseeesenqeom & 38 T3q SC at ived 
| | . mp Svodems 
Moomod ai .oeld erobLligd 
Ro e*#*#eaceewet es Ceee te sereaneee ewes odnom 8 ta TO. Sf 
| 7 | | bined a 
beOfmol at .2ef es) Tin axitanrioe £67 | 
) a nb eens A eee eh Se 28.08 
@éatado aninasd ([[s gaftongl ~inemetsste betinpes ods eTsqeTts =] 
| “.ertotealmmoo gatifoe Bas ae 
a8e8E . tof 
.c08 .Of MaIHORT — 
(gotten imaxd eAd.0 YO) er. ; ; a 
SBdHORA ,20mSL Sra tovifO to semaisd [sity ens et griwoffot ont - | | 
! :fer ,f£8 sedmeced ,Monetd ola ise 
ER, duis din’ b 6 Wk sieid 3 s,08 ve cone ale woul 
CODES eis cen chs Caidinds sacneveseevecse p SURV LOGG— Benmuoan 
002.5 Aaee2 02 *@ © +s f ** @ © * cae edule acagh 0d Ogee eee fead | 
08 sesseerenenseeereccorsegeusesesuassen seas sB@Omodad 
003,o : § . sear eve cawecccidun'tl a enanen ele gelhanado10N 
005.3% 008,94 | 
RELL NTS a 
000, $2 aati. 4 


ent feaibs oF asinine Lanquol, sdd salem 8359 ‘ovods sit mord 
is eatood 310¥ seo! 


.2<88 .t0f 
BOL 





PROBLEM NO. 204. 300 
(N.Y. C.P.A. Examination) 


William Pitt and John Fox, merchants with offices in 
Manchester and New York, equally interested in a business venture, 
decide to dissolve the partnership as at December 31, 1911, at 
which time their financial position is as follows: 


Accounts receivable uncollected,....... onaseesy wtg000 = $19,480 
Preece Lurrit cure: OM nemmicbsesstievasass s eee oe hag gene Be 487 
ROCOUNLS Payable GHLIGUICRTEE eee ce scdcooncces B@ . YOO = 4,383 


The accounts had been kept in cual currency. 


Pitt acts as liquidator and takes over the business, agreeing 
to purchase the furniture at a 10 per cent reduction as at January 
1, 1912, and to allow on the same date to Fox £600 = $2,922 for 
his share of the goodwill. 


The accounts receivable are collected on the following dates: 


April 15/12,..- &1,000 = $4,870 April 23/18,.... & 100 =%$ 487 


June 10/12,... £1,600 a 7702 (Oct. 6/12. « Bl. G00 6,844 
The balance is uncollectible and considered lost. 
The accounts payable are liquidated in full as follows: 

March 11/12,... B 100 = 487 Aprii 20/12,.... 8 200=% 974 


Mey YSO/72 >... & 306 eOGY POcte. | 26732, vnae Ge BOO =” 1,462 

After deduction of the payments made, the net receipts are 
realized on a certain average date (to be determined) from the 
date of dissolution. 


Pitt advances to Pox £1,000 = $4,870 on March 31, 1912, and 
pays him the balance on January 1, 1913, with interest at 6% 
per annum. | 


Prepare an account current in English currency only (calculate 
ing interest at above stated rate) as Pitt shall render to Fox, 
disclosing the amount cue the latter as at January 1, 1913, 


Ref ° 55e4 2 


164 


Pa!) Se ee eo ee ee a). ne S| fi 
ce ee ee eee 





(no ltorinsxd eAn Ted +¥.M) 


) nt eoottio dtiw atmecdovem .xo% afot bas t¢id metitiw 
swinev esontesd s mt Seoteetetat yifaspe fot worl Sis teteodonseM 


te ,[{@L ,{& tedmoosd ts ee qidetentrag oft ovloeelh od ebtoeb 
. | sewolfot es et moktiteog Latonsatt tkedt emits dotdw 


000,34 ucaccecescvaeeqhotQotioons oldavieost esmu0290A 


OBS. Cf@ = 
vas on oof ma céissnadeale ees weepesn mo eecod Borst eotTto 
oh | = g0e a ses vevseauceeecegueceosspiiag eidaysq etruoso0A ; 


+ YOaaTILS feu mt tqev need bac etasyooos edt 


_ grieetms ,ceontaud oft yevo eoxtat Bas totebiluptl eae estos SIIT 
_ Yytsuvest ts 23 aoitoubet taso teq Of o te sitter) eds seasioruq oF 
eos tot SSC,S9 = 008d xot oF oteb omne ody sto wolis of Sas ,SL0L ,f 


»ffLiwboos eft to stare elf 


seotsh antwoffot ent ao botoelfoo ets sf{davfesor etauooos ent 


> Fp $= COL JF o.-oSf\ES LEaqA OTG.d9 = 000.fe ..:,SE\GL Ltaqs 
Se; $22.3 — 008 . fd reas -to0 ger.? = O00, fa oe + @SL\OE . Stl 
; ; feof bowebhtenop Sas efdkisoeffoony ef sonaied ont 
of sewol fot? as {fut at botsbiupri ets sideysq stdavoogs eat Ei 
pre = 00S 2 .....Sf\OS finqA Vet ¢ = OOf & aoe eSfi\fl dotsM 
ie So3.{ = 00@ 4 oees eek \an ~f00 (63,1. = DOE 2 woe e Sl OS ys" 
A: 


818 efqiscert ton sft ,sbem ataemysq oct To sottoussd tedta 
sottyfLoeelhs to etab 
bas .Sfet £2 doxwid no OYS,3¢ = 000,14 xo% od eoomavhs $3Rd 





) etelsols>) Ylno yonetiwo detigad mi tastive jauoose ma ertsqert 
ex0l of Tobnog If{scle JotG as (stat betste avods ge daotedal act 
 ,8fef .f wisunet ts as tettal odd ovb tavoma edt gateoloeth 


. ehetE . tA 
par 


, om 5) 6 cy 7 a ry NO ee 


edit mort (becimretoh ed of) steb ogereve aist1eD 8 Mo bestises 


is RO te seorstal dytw ,ciGl .f yrsuast no sonsied eit mid ayeq 


















“PROBLEM NO. 205 B01 
(N.Y. CePeAs Examination) 


Wright, Dunbar & Company, of New York,U- S. A., and Van Allen 
& Company, of Amsterdam, Holland, bankers and Cealers in foreign 
exchange, enter into a joint venture on January 2, 1914, for the - 
purpose of dealing in foreign exchange. . 

It is agreec that profits or losses are to be shared equally, 
that interest on the account current is to be figured at 6% per 
annum, exact number of days per month, and that guilders at sight 
are to be calculated at 40-1/4. 


The blotter of the New York bankers records the following 
completed transactions for the joint venture of the first month's 
operations: | 


January 10, 1914 | 
Received on a/c from Borton Bros., New York, and sent to Van 
Allen & Company 2/c joint venture, £2,060 on London, due 
February 10, 1914, at 4.87 sight and 4-1/2%. | 


January 16, 1914 
Receivec from Van Alien & Company value January 2, 1914, their 
Graft on Wiener Bros., due February 25, 1914, kronen 48,000 
on Vienna at 49-1/2 guilders, 2 months, discount 4%. 


January 16, 1914 
Cable from Van Allen & Company that they have sold for a/e joint 
venture, value this day, £2,000 on London, cue February 10, 
1914, at 12 guilders, 2 months, discount 4%. 


January 16, 1914 
Discounteé this day at National City Bank, New York, for a/c 
joint venture, value Jenuary 16,1914 kronen 48,000 on Vienna, 
due February 25, 1914, at 20-1/4, 3 months,discount 4%. 


January 27, 1914 
Received from Van Allen & Company value January 13, 1914, their 
draft on Charles & Company, in Berlin, cue February 13, 1914, 
Rm. 30,000 at 59 guilders, 2 months, discount 5%. 


January 28, 1914 
Sold for cash a/e joint venture, valve this day, Rm. 30,000 on 
Berlin, due February 13, 1914, at .95, 3 months, discount 5%, 


Prepare as at January 31, 1914: 
(a) A statement showing separately the results of operations as 
concucted in New York and Amsterdam respectively. 
(ob) The lecger accounts of the joint venture and of Van Allen 
& Company as kept by the New York firm of bankers. 


Ref. 56-1. 
164 






































LOS 808 OH wareOn 4 
fnottcalisx «AT 9) eo 7 


‘MellA maV base 4.A of -Ulto¥ wot To .yasqmewe™ 
mtoant nf atnfaos bas atetacd ,onetfon usSTed er 
ods tok ,dLef .S yisrast 20 aad icy tntot # odmt % 

| onnedoxs agletol mf gaku 















axesoupe bovare od oF 91s eoerol’ to et lotg “$ectd 908% 
28 to hewart ed of Bf Faovive tasroo ge ya 


| sitet $n ovobftua tant — edinom teg cyeb To TOORun » 
too ts nose sol 


geriwolfot ord ebrooet AEROS aecoy wet edt To Synch 


e'ddnom govit ond to etutaev tafol, edt tot enottesenstt Bie Hie. 
1BMOLS 2490 


afer ,O£ qicuest 
/ sv of fnoe Bue yro¥ went Leona notiod mort o\s mo hevisooh 


ub ,obmot 99 000,82 ,aiudnov tnto! o\e versqied 8 aolis re 
led Aas tigte V8.5 te ,dfeL ,Of wrsecay Lene 


Sref ,of ytaunst 


forts , sete So yisunet onfev yraqeod & woLlA meV mow Sevieoeh ‘7 

| mi :. meno'D' .SfOL ,@8 yragide? Suh ,.no7G somelW mo sist6 iy 
ear try soe tb ,eritnom & ,evediing S\f-e) ta sanelV no a 

pe Sr@k ,aL yrsuaslh | * 
tarot e\s sol Sfor evan yedd nad: yasgmod 3 melLA geV mort oided tn 


,OL prairie or> ,rohaal mo 000,Se ,¢ab ekdd sulev ,eminer 
LPB dorooets Lantnoet & ,etshlivg Si tes , SQL 


afer ,oL yteunet 


a\s tot .xoY welt .fard vito Lanottean ts ys6 etd yong Sp i 
anne ty, ao 000,85 nono ti DEOL, aL yisounst aupisy .ewinaev ay 
“gh $nvoge tb, ocid.aom & DA L208 $s ames: eam Ysudes # re 


‘ at) BEOL .WS yunectat 
DWtedt .SfeL .éf yiauest oulev yosgmod % natch nev mont. hovteoen 


eter Mf é wisuide” asa .rtiined ck ,vasqmod & sels a0 Heth 
oh8 dro‘? rH ,eddmon & ,eteb! iug ea ts wrager omih 


| prer 8S erasrat 
fio 000,02 mH ws etd suisv .eaudnay Inaloy 9\s deso tot bLoe — 4 
ih ee tavooath ~afitnom © ,d@. ge ater .2l yirurdet eub ,aiiqed el 


| :ALOr . Is yao, $s ea etsgent Me 
Bou enotietsdao to stiueet odd ylotetaqee ankwoue gnsmetate a (ay 4 
-vlovisoaqeot mabiotemA base a10oY wet al besoubmos 
meffA asV to ona otuieev Sebo, ed to etnwooo8 tenet oft seme 
eeterinad to mrt? + ox watt of we tco:’ es qasqod 3 


PROBLEM NO. 206. 303 
(N.Y. .C.P.Ae Examination) 


A London in current account with B of New York, cngages an 
accountant to prepare a statement, to be mailed to B, from the 
following cata: 


1914 DEBITS r’ 
May. Lae sede ee ees vn s'e neces ceed see Coe 
HEY Ds eePRe ECan ee keh eneuceeae t LEt 
GUDE RE MER MEO MAAR HRs cee ces caus 340 
pe OO er er 260 


Total BOWGwe oe sy « 4.4 partes eae £1,357 


1914 CREDITS 
Sea's wc ak Le ANG We 6 dis ee ox : ~£ 500 
TP Relea Pics etre Date, oo bg gyi ; 300 


LOCHL CECOLGS y nnn hewn s gee &¥ 800 


BAIONGS sess hew ees ° ee £ OF 


eop+eeeeus4#464:c8468 8 


Find the average due date of the account and the interest at 
5% to July 1, 365 days to the year. 


Ref, 39-6. 
164 





- ri TT i aii di a 
a ‘ { 
7 co ’ 
" 
‘ , giao wo 
y: «i oF Se 
a: 
oie 
si a a 
‘ Ors . i 
; na VLE reeeteee 
a hee Ob “ 
im yee oeLl ; peer Pea sie Se | 
ee j Ae oe i e | - 
. f re _ s r 
a ¥ ey ' % ia ee 
a ee i'd 
vie + ae J 


7 oes 008 & Eo cman 
a4 : bs 


i a j ri A 5 ¢ » s 2 a 
' 7 “Ti / (00 im 


a ~4 f " vi 
al i ri ( . 
my i 008 t eseoese ee os C9 Ee 
oie : | 
; 4 
i * « 
| 7 * » al ined 
a m4 Yee 2 4 OREN 2H 68.5 #5 Ro * 


By teerotnt oft ban $ns10098 e mia od eva 






ccna 


~~ 





; | | Lat 


PROBLEM NO. 207. 203 
(N.Y. C.P.A. Examination) 


A San Francisco corporation builds a plant and established a 
branch in Glasgow, Scotland. At the expiration of its fiscal 
‘period a triel balance is forwarded to the San Francisco office, 
as follows: 


Deas 4 46.* 6.4," «0,9 ote he hcte® Sitch aLS8. tak? © Cte eS ee 

Accounts ASE TERTAS? Be Dik’ Lhe i €4:4 ots 5 ripe 42 +59, 8) 

TGs wigs oi tchs+ 6 4se sean est.* ake? Oo kat 4 45. e 25,000 

Inventory (enc of fiscal nik cold Per ae 50,000 

REMLGCENGS .ACCOVIE gee wimeie sue winyect oeyr eee + ee gs @: <b Od gO0D 

CS aes 0 Mio 5 és Wee same ge Sees ae Ay ary aa eer if wow 

ACCOUNTS HATS IRLS sas mare «4 6 Sle bw oe Se ewe ae Z 87,500 

Income LrOm. 22160 ,.bees ese aes e.fekis #0eN, 8 8's. 6 250,000 

San Prencisco DTCC ss mess > 2:4. ie Oe ree a 307,500 
£675,000 £675,000 


A trial balance of the San Francisco books at the same date 
was as follows; 


Capital BEOGK gaaces seo oe ns Lh ens se Oh ame aR eee ee $2,500,000.00 
Ce ee ee aay wa eae ata Ay. 500, 000.00 
GLASSOW BCCOUNT pe eeeenenscs Neeaeierneae  LeGevseowsy 
REMI GUARCS BOGOR seen ncs cece ACS msi 729,201.25 
Expenses at Gat Brancisco. «0 s.0.0 donee ‘ 25,000.00 
CO whale 6k od ee ee ee LRA EEP EYE was 64,031.25 


#3 229,281.25 $3,229,281.25 


The remittance Account is composed of four sixty (60) day 
drafts on Glasgow for £57,500 each, which were sold in San 


Francisco at $4.85-1/2, $4,86,$4.86-1/2 and $4.86-3/4 respectfully. 


Prepare a balance sheet of the San Francisco books after 
closing and a statement of assets anc liabilities of the Glasgow 
branch reconciled with the San Francisco books. Clost the books 
at rate of exchange on last day of fiscal perioc $4.87-1/4 (con- 
eae of remittance to be mace at the average rate of the four 
bilisi. 


Ref. 51-4. 


iby Tay 





ea 


tos 4 OS .OM 2 
(nobtentmant «Ad 


) a : 7 
6 bornetidstee bas Inelo. n ebhiied notss eee 1D 
fso2it ati to noisatiqxe edd tA beet 
| 9OETTO ooeionstt as& ont ot beSrawsay af 


: ie act a5 

900 ,OéS3 eee ee ed creme 
O08 , Ff cihaess e q 
Ooo, “ae | een eee aerate ae reosnvueee Hees ease a 
000, O& enie > sae ene tol tame paaahi "do" 

000,084 ee Pe ee Oe ee 
Ce i aerveseeoue RM ADI DEAT <I. ee 

00a,"8 2 RASTA: is oaitnihiolne sens OORRee te | 
000,048  peneeoreracecevecseseeesqgQOLS8 MOT? GROORE 7) 
| ito ooatonsy? mse 


cabepeteorvrtereowmeem 





’ 
_ 


eteb emse ond ts arfood oostoas ane ont to eoneled tated A | 
rawolfot es eaw 


00. O00 008 83 hapa Selfagtion nts: Ge PE ee mn gE Lestqsd oo. 


00,000, voe. 1% os ert Seles 6068 @ eae (4s eee © ee At 
: \ 00.068, Oe, I cine cecaciu k aw ee eee aan 2 
2$.£8S,es7 ob 0 6G 0 b> cinlele haw mk geen eonatd timon 
00.000 ,.d8 pevecrcavceeqgOD@lONeTi M82 te eOeneqxi 


‘i , ‘ GS. LEO . 30 _ coeeenathe si 


gS. 68, 088,8$ 28,188,089,58 
yah (08) ydxte wot te beeogntoa al gxHoooA sonnti beet 
ae@ at bfoc oxew Aotdw ,nose 006,%oe nan abe $0 10 gre . 
sti lvttoeqaey B\E+38.29 One S\1-33.2$,38,9¢ eS\ind8.89 ts ai tamil it 







tetts avood osetons «i mse ort to dooce oonnlad B ersqexg 
wogesla off to eolitiidsti Ss efoees to gnemetst2 #& bey grleolo 
exood add Geof) .afood ooatomsTy mse ends dilw Hheltonoset donned 
“109 ) AL-"8, Sg bofteq Isoett to yas desl mo egnedtoxe to stst $s 
“wOT odd Yo stat egeteve odd t8 obam oc oF Bars anit to eget 

? * & 


wd=f8 ton 





























204 
INVESTMENT ACCOUNTING AND MATHEMATICS, 
PROBLEM NO, 208. 
(N.¥. C.P.A. Examination) 

State the price at which the following bonds must be pur- 
chased, so as to net the purchaser 5% on the investment for the 
first five years, 4% on the investment for the second five years, 
-:and 3% on the investment for the last five years: 

Bonds for $10,000 maturing in 8 years, earning 4% 

i ae W 10 000 tt tt ie i! i! 3% 
ft tt 10,000 ty Wl 15 it '! 2% 

Show the realization account on the basis of purchase price. 
Ref. 6-5. 

PROBLEM NO.209. 
(N.Y. C.P.A. Examination) 


A and B are dealers in bonds and share profits in the pro- 
portion of 


A seventy-five (75) per cent. 
B twenty-five (25) per cent. 


‘A and B engage C to sell bonds, agreeing to pay him a salary 
equal to twenty-five (25) per cent. of the net profits to be 
divided between the partners. 


During the continuance of C's contract the firm purchases 
one hundred thousand dollars ($100,000) Waterville Traction Come 
pany first mortgage 5% bonds on a 3% basis. The bonds have 
eighteen (18) months to run, interest payable semi-annually 
(three interest periods). 


The firm holds the Waterville bonds till maturity. Prepare 
a statement of the Waterville bonc accounts, showing cost, 
interest and amortization. 


: The total profit to be adjusted is ten thousand dollars 
($10,000). 


Show the division of this profit. 
Ref. eleZe 


164 





















-2OITAMSUTAM GMA OUTTMTOOOA THE 
«BOS OM MEIGORT. 
; (no htentmexd eA.9.9 > Ym) ae ey 
-wq sd teum ebaod gaiwolfoet edd dotdw de eo fo fe oid otase 
edtf 101 taemteovnt ent sto RS teascowg edt joa o2 
.aresy evit brooee od tot Saomd_evat eit 10 RB 4 | vt Ss 
eqsey avit gest edt to? Kad i e i920 
Re Qnimias ,eTASy e al getirtam Pe Tate : 
. | n ae wt " 000, ry 
.soitq seanomg to elesd ont mo tavosss nofttissifset edt wore 
| ait 08 | 
-208.0U MIIO#T | 
(motstanimexd eAeTeD oH) 
-orq oft at etitorq stsde bas ebaod at evelssb OTA @ bas A. 


Yo moti 
bg 
,tneo tog (8N) evii-ysneves A ens tee 
tne teq (dS) eRe a «fete GON 
pure e mind vea ot gpreteowge ,2bnod {foe oF 2 9 @ bac A a 


od ot etitow, ton of? to ,ia99 teq (8S) eviieysnews of Laupo — ‘ > 
.etontisg edt asewsed nagecties “ i 


soresiomug att edt toatscoo 2'D 16 eonsumisaoo ott orto 

«nod mottoat? elliviotsaw (000,00fG) ersifioh hbasesodt bethand : 

eved ebaod orff  .atesd RE 8 ao shnod RB egsadtom oak hoy 

giisucne-tmee eidsysq deorssat ,nsrt ot eddaom (81) moose 
.(abolxeq tas 


car aa wed beet an Litt erred ef{ivisday ons abloa mutt ent 
too gniwode ,edasooos Smo ellivreta’ ett to tnometsatea 8 
efoftastinoma bus prewer ie 


etsliah Samesorts nod ek pastas ed o¢ shtonqg [ados off 
fotos 








(N.Y. C.P.A. Examination) 

An investment bond house purchased 10 New Jersey Traction 
Company first mortgage 5% bonds at 83-1/2; 10 New Orleans Gas 
Light and Power Company first mortgage 5% bonds at 1.04 (accrued 
interest not to be considered). | 

Prepare the necessary entries to record properly these trans- 
actions on the books of the bond house and to facilitate an 
audit. 


Ref. 56=3 ° 


“PROBLEM NO. 211. 
(N,¥..C.P.A. Exariination) 
A co-operative assessment association began writing policies 
in 1909 on the five year endowment plan, the members being en- 
tTitied to participation in the surpinus at the end of said period. 


The following certificates of the class maturing in 1914 are 
in force; 


Monthiy Assessment Certificates in Force 
BO. 10 
1.00 . 560 
2200 | 1515 


The net amount to be distributed is $136,620.60. 


Prepare a statement showing the amount of dividend due each 
certificate. 


Ref. 56@6.4 










a ae eee en ee i. ct aw ae ba, - 
ities ep Se - J 7 ’ : . i. 
| } | bd ( , Py : My ee i. 

aos OLS . OU. MaTEOM 


| : ah os ee} 
(mo ttectmmmd «AeTeD oYeMp 
nottosiT yeerot woll OL Seesdotug eevod Saod t yemsooval 
end antasliO wef OL ;S\i«88 os eabmod RB egsgsiom : 


hopnoos) 20.f oo obcod RS agagérom text? yaReqMod re0T 
sal  s(botedhiaenos ed of. 


. ty ) Se 4 a i ae ye i} 
~naant sedi yiveqorg Srooet of eetasne Yiseesoen f $ etsqett 
ne ot¢atiftos? of bas seven Oned edt to estood edd ao enot 



















io) 


5 4 Pi 

re 
o i ANY a. 
}, 


mm | 


s£fS .OM ME2AORT | 

(nottentn axe eAets0 «¥.1) an Mey 7 ; 

eolotfiog saitka naged dotvelooess tuemeseres ovidarteqoso9 A 
ot nailed etedmen eft? ,asiq duomwobre isey Svit sis ao eOef af 
“eboiteq Hise to bao sit ts enfouse ons mt noiteqtotiueseq ot befstit 


e718 HLOL mk natigtam eselo eit to astacttisteo gatwolfLot of /. 
c | ' :9otoT at Uae 


goto at eetaoftisie) | | tremesonen vicitnol 1 oe 
ages | ee ghia 


Moss oud Smobivib to gnwonme ont gntvose tnometage & areqord a * 






* 


PROBLEM NO. 212. B06 
(N.¥. C.P.A. Examination) 


On December 31, 1894, Smith, Jones & Company purchased 
$100,000 of the Swamptown & Northern Railroad Company's first 
mortgage 4-1/2% bonds for $103,394.43 flat. On June 30, 1896, 
one half of these bonds were sold for $52,418.55 flat. 


Prepare a statement showing the profit made from the sale of 
the bonds and the interest revenue for the two years ending 
December 31, 1896, assuming that the interest on the bonds in 
question was payable semi-annually, January and July 1, and that 
the price paid for the said bonds was such as to net the investor 
a nominal rate o* 4% per annum, 2% semi-annually. 


Also prepare an analysis of the Bond Account on the ledger 
as it would appear at the close of business December 31, 1896. 


Ref. 44-3. 
PROBLEM NO. 2135. 
(N.¥. CaP.A. Examination) 
An annuity of $3,600 @ 6% compound interest is to be paid in 
four equal quarterly payments. Furnish the annuity depreciation 


account with quarterly balances. 
Ref. 47-5, 
PROBLEM NO. 214. 
{N.z¥. C.P.A. Examination) 


A trust company assumes the reponsibility of a sinking fund 
on which it guarantees to pay 3% interest. The trustee receives 
$103,000 deposited to the credit of the sinking fund and on 
January 1, 1920, invests on a 3% basis in 100 Pike County Light, 
Heat and Power Company 5% $1,000 first mortgage gold bonds, due 
July 1, 1921, interest payable semi-annually. 


Prepare the accounts of the trust company, showing the 
invested amount and the amortization of the premiums at the 
several interest periods. 

Ref .52<2 ° 


164 







( nottacnimaxs 


beendowsg yasqmod & somoG ,egins , C6L 4 fF 

teti? e'ymeqmod Ssotlioh avectsyou 4 wotgmANVe 9:!; 

 etelt 88.912,883 ot Sloe oew ebnod ceeds io 1. 

to efee eit mort sbam trtorq ett gniwore snemetate & exaq 
aatbne etsey ows ont tot sumevey teotetat oft 

nt ehood edt no teoretal edt tearid antowees , 18 recimoos 

fsd3 San .f ylot baa ytavaslgyliennne«tioe eldeysq eaw me oiteeup 

Toteevat odd ten ot 2A rove eaw ehmod bine edt sot Steq ofiq oft 

+Vilsunne-inee SS murine oq RS to eter Ienimon sp 

tegbel oft mo tosoooA Sood old to eievinas as etagetq oafA 

208L ,f& redmsoet enenteanmd To exols sit ta teeqgs bluow tt ea 


au x | 
oSedd «ton too % 


oe 
i] ' 
; h 















a © 
' 
r 

















-EL9 0% MLIGONG 
(noltentrsx® »AnTed Yo) 


at Bisq sd of ef teetedné Basogmos R8 @ 000,£8 Yo witunne mA a. 
aolitatoetqed yttunnsa ett deters yt -einsmyse vitedasyp faypea wot 
; | -aeoncled yiastisup détw tnvoses 


(moitantmexd '.A.9.9 Yet) 


Hast gaiinte s to ytilidtenoqe : edt cemvese Yasqmos teuxt A 
eoviooe: setevtt ofT .tsoretmt RE yaq of aeetnstecn 3k doistw sm 
10 Bas bast yetinie sit lo tibero edt of botteoqeh 000, S0£ ane 
etdait yteved eid OOL af etend PE = no eteevak .OS@L f yisumst  — 
ob ,ebaod Slog sgsattom gexlt 000,5e ba yesqaod towod bas deer - 
‘4 -Vilrunneeimee ofdaynq teetetat .{SeLr .f ytot 


oft antwode .yntgmoo teutt oft to atavooor edd etagert | 
edt ta esmyvkmetq oft to molsasigtoms act Ors toioms beteevalt is fs 
Sa ie -2oofteq teetetnk {eiever ae, . 


DOL 


© I ¥ ae ei woe! me rrr Pe Tp an ae. 


PROBLEM NO. 215. 207 


(N.Y. C.P.A- Examination) 


The Fairview Building and Loan Association, whose monthly 
dues were $1 per share, had three series of shares in force at 
the end of the third year; the number of shares in each series 
and the value per share were as follows: 


First series, 500 shares, value per share $38.87 
second series, 600 shares, value per share Se Se | 
Third series, 400 shares, value per share 12.32 


A fourth series of 500 shares was issued at the end of the 
third year. The net profits for the fourth year were $3,000 and 
the total profits for the four years were $5,325. . 


Frepare a statement showing the value of a share in each 
series at the end of the fourth year, and explain your method 
of precedure. 


Ref. 5206. 


164 












218.0". uszeor 
(noite tment wheT<9 a 


eititnon: geod ots aspokeaaend. Deir let, 
te Ootot ni eterhie to settee soids bed ,' 
sali Mose at acrtatla: by ‘odd ptsey £ 
} fot ‘en o1ew ouale 3 


$3,008 ernde: ‘mec outev ~eousde a | 
VS.2S' stsde 19q. oulay ,eotcie O98. .29. 
SE. SE orncie bo euiey coe tnla: OOD 


ont to Sine ond os Séweee: esw eetarfa O0€ to sore a aoe i 
gs ah 000,25 exe eet dtagot ott tot etitorg ton Mu 
a8, 8g orew indy swot ons xo ed Hoxg 


fone wt weeds 0 Ro sataw eae gitwoce gaomatede s etmqott- 
 ~bontem twoy mkefqxe bas  yiney dgavot ant 20 hate. ods ts eeltes 
,etubsostg To 


PROBLEM NO. 216. 208 
(N.Y. C.P.A. Examination) 


Henry Smith of Boston anc Frederick Wilkins of San Francisco 
are to rencer accounts to ench other every six months, with 
interest calculated thereon at 6% (360 days to the year). At the 
end of the first six months, i.e. June 30, their business relations 
cease, and the balance due to either is to be paid 30 days there- 
after, with interest at 6%. The transactions between them were 
as follows: 


Smith had charged to Wilkins: 


Jan. 15 Acceptance, to pay Vilkins' debt to London bankers, 


Cys, Jar SIs PSH AWSS 0 0G 0 08 SG aides» ois ae eteee ote ebe 7,000 

Feb. 10 Draft, favor of John Sloane é Co.,Boston due Feb. 28 400 

Mar. 31 Cash to Wilkins for traveling expenses,. " Mar. 31 500 

Apr. 12 Samuel Hardy, account collected,...... bie ee Mee. Sl 600 
May 14 Net proceeds, account sales, consignment 

RROOCNCING 65 cas teeta sb bre ye o'sne» ose UPU AGE, 51.150, 000 

Jurmelee Hotes, HIVOM, TIZONG » Lecce ceva bes ovess cae Me Ome. (Sl 1,500 

$12,000 


Wilkins had charged to Smith: 


Jan. 15 Proceeds,account s2les, consignment figs due Mar. 31 $ 2,000 


Feb. 26 Cash, final, payment Om bonds,....c.deere- Feb. 2& 600 
Mar, 31 Draft,reimbursement,traveling expenses,. " Apr. 15 500 
Apr. 12 John Jones (bac a/c) one«half Int.in loss " Mar. 31 400 


May 14 Note for one-fourth interest in tug boat, " Aug. 31 1,500 
Jun. 28 Aeceptance in full settlement, account 


SPLOR WIS sy ASL ole ee Gls FCS ow ee ad SLO EARS OOD 


$12,000 


Prepare an eccount current with interest, as rendered by 
either Henry Smith or Frederick /ilkins, and state separetely in 
alphabetic order the names of the ledger accounts complementary to 
the accounts of the respective items appearing in the account 
current: - e.g. if a note of the debtor were credited to his account, 
the complementary account would be bills receivable. 


Ref. Read. 


164 





























oT 
A, gy 


Ri NE oe Sr 


i 2 


808 hae 2S£8 OW ‘wevedest: 
| (aoks eater aAcT.90 * "A 


dtiw yeddoom xie yrove taddo doce of etam 0.5 
oft tA .faney ad oF eyed O86) Ra ta mootors f selsolse 
2meitsiot sesateud “fod? .0f om .o.t On xt 
-e7rodt eyeb O8 Bing od o¢ at tenAtte oF aud ed end. 

stew mont pest ertoitosennst ott e $s 38 


:eatnfliw ot bonrtndo , beet gto 
yetovand eihcol of ddod ‘eaistit'! ‘ena ‘of room qagok ar ae 


900. esse reereracrescreneeseseernaceaneasene lO ms es 


88 .del eub nodeod,.09 3 onsof2 alot Yo rovat .tistd OL .der 


ooe te .tem 6") «4 eseneqne catlovett tot eablliv of desd f& .1tsi 
005 «ss k@. eta” wsecseesedOd9al fon teyveoos ,yo1sH Loeums® SL .aqa 
| tneanmainnoo ,2eefse tauooos ,ebseno1¢ Fo SL yall 


000,5 it +BUA " 6 Wha + 44554 w0 8's wee Om vee wag ee nae 
EGON reve weenereneneseens g MOK mort ,etoH 63 «out 


OOc.f ff. 
:it¢im@ od begusto bet ankiliy | 


000.8 & £& .298l oy ent? gnommnicnos ,eofre tnyoone,ehesoord &{ mst 
0023 Se .c3% " e#rrrevee eee , 2octod rede serearyeg {arck? pa 8s .deF ‘ ; 


002 ef .taA ™ .,eseneqxe gotisvett ,.jnemosisdmiet, LS .0u 
oOb ~ £& .wem “ eeol mt. dal Blnd-emo (o\s Sed) sonot mot SL s1qA 
004, £ fe .guh " yfsod gut at teoustat ddwol-eno 101 esol eto 2f£ ysii 


tnuoson ,tmomelitoe Lfut nk oon 
900.7 lé int ° oinléin.a « ons Need seb esiee Dee BORO cealee 


O00, Sig 


asf) 


yi bowobaot en ,teorstnt Att taowmo tuyooos ma eteqgett 
nt yietessqee etete San ,entilhy’ aAstasherl to ad tne ymen vrorltio 
of yininemelqmoo etnyooos san bel eft to esmen ott sebro oftedarqis 
trsosos odd at gnistssqqs emett evitosqeet oft to etawosos odt. 
«tesooorn aid ot bettbero etew toddeb od to oton 8 Tt .9.9 = :dmeTiNO 
.ofdavisoet aeflid od biuow tayooos yistmomelgqmosa odt 


Eek te 
BOL 


iF 7 
| hey a 
U Pe | bo Sed dee ae i 


PROBLEM NO. 217. B09 
(N.Y. C.P.A. Examination) 


A syndicate: ovning in fee large tracts of timber land makes 
a contract with a lumber company to sell 1,000,000,000 feet of 
standing timber, at the rate of $3 per M feet. The lumber com- 
pany agrees to cut and pay for this timber within a period of 
six years, and guarantees that the following shall be the minimum 
amount to be cut and paid for in each of the six years, payments 
to be mace in cash at the end of each six months: 


Minimum Minimum annual 
gnueranteed payments When payable 
ist year,... 80,000,000 feet $ 240,000 June 30 $ 120,000 
Dee. SL 120,000 
end Weep {G00 7000 °% 270,000 June 30 135,000 
DSey Si 135,000 
ord Eee es LOO, 0G [O00 68 Lor 300 , 000 June 30 150,000 
pec. 31 150,000 
4th Po vas. 220,000,000 * 360,000 June 30 180,000 
DEC. se 180, 000 
oth Wa aa LOO, 000. 450,000 June 30 225,000 
Dec. Sl 225,000 
6th OPg.e UO OOO SOG. /% 600 , O00 June 30 300 , 000 
Decs Sl 500,000 
Total,.... 740,000,000 feet $2,220,000 $2,220,000 
The syndicate cesiring to anticipate the payments under its 
contract, applies toe its bankers for tre cash value of the con-- 
tract, offering as s 


i 
£ 
ecu urity the contract itself and a mortgage on 
the timber land. What is tne areuens worth of the contract, 
calculated on a 6% basi | 

Refs Ise5, 


164 


























08 _ = wis O04 usteost 
(noitenimexd thaLed eas 


Bese 
sexta bael rodi?t to etoant ogual eet al gat ae 16: 
to +9972 000,000,000, f L£f92 67 yoasqmos “sodanrl " 
anio9 rodmyf sa? '.#903 M teq 8 to ott Rey vas he 
to Bofrsg 2 nidtiw todmit efit tot yaa bas , 
mumiate: ofS ed ifacie antwollLot ert tad? Sebines ny Sts 
einemveg ,ctsey xic odt to dose at tot Sisq bas tuo ¢ 
sedtrom xie dose to ‘bre sit $2 sess ee 


feonnees mumic tt enmmbet " 

seidaysg cron ae r or ene ihe Os 
600 .OS OF. srt. 2, OD tost wae “tS8¥ a 
O00. rey: nk .90C ei : ei a = 








000,225 08 ome&  000,0TS " 000,000,0¢ ag. 06m bas 
000.6 ié ,o9 te oo a a 

900,084 02 sant 000 ,00& /  @ 900,000,608 4... * bat 
O06 .0eL & .99d ; eae PF ah 
600,081 08 onut 000.085 * 000,000,08f ..., " Ate 

600. 28s 08 snut 000,082 * 000,000,088 secg" a6 

000, ass fe .o90d - 7 yz Ce i a 
000.008 5 ent 000,008 f 006,000,008 1.6, " We © 
609,005 fe «oad : , ie ah sale 
000, 028 S$ 200 Geta feet CO erent te, ct 


eti ohne esconvad end agectotias of) gaittess essotiaye of mn 
eo2 oft to sufsv meso ot¢ 10% eis insd edi oF eoticqgs ' tostt109 ~ aa 
mo 934ndi1em s base Theeaeti Fosatsuce scd png ee es gniselte ,joavwe 
eosttios eft to dtaow ¢rnozesy ect ef tadW .basf sodmis ait Fos,’ 
| | fetesd 20 s 10 hetafvols9 of 


aan 
nar +o & 





PROBLEM NO. 218. 210 
{N.Y. C.P.A. Examination) 


Adams’ cf New York anc Lotimer of St Paul each maintain an 
account current with the other. Settlements to be mace semi- 
annually; by 30 Gey notes, inclucing interest on the account at 

6%.. Their transactions for the six months ending June 30, 1910, 
were as follows: 


Adams charges Lotimer; 
. 1915 
January 15, Acceptance Crawn by Lotmier,. 
Pebruary 10, Draft in favor of Hardens 
Woe. 2... > <s<-i- apeearone Pebruary £6, 2200 


ve January 31,$ 21,000 


Qu 


March — O1,CASN, esse eee ee eee ere ‘weowraue March nen 1,500 
April 12,braft \in favor of Lotimer,... due March Le 1,800 
May ’ 14,Net proceecs,Account Sales,.. due August ol, 6,000 
June 28,Note - Smith and Gompany,.... due October 1, 4,500 
$36,000 
Lotimer charges Adams: 
1915 

January 15, Net proceeds, Account sales, due March 51, 6 6,000 
Februe at Cabby) notesot Reynolds, .ree.-Canue! February 26, 1,800: 
March .- Pea SREMEVMSNT oc cse eae s's ss GUGEADRIL L5, 1,500 
April 12, Joint Aecount, one helf 
SNGEreS Ion goss, ..G%s%te-00ue March O18 1,200 
May 14, Acceptance favor Johnson & 

COMPO eae hairs nile s fee a vie OU KUUSS ois 4,500 
JuUnNCInS seb S| Aceountesejes,; Woodsysicinnsse due July ber ore ow 


$56 , 000 6,000 


Prepare an account current, with interest, as rendered by 
either party to the other, supplying the credit side of the 
account anc showing the net balance of account at October 31, 
for which a note should be given, 


Ref. 43-2. 


siete 












gee eect <8f8 0m: A 
“(nottonbyext oor 


| roe beset oe ose Freisn 04 
mimse aber of o¢ atmome tag 
33. gmyooos ot co seetede 

eSL0L 406° Scr Seba 







hee? elisa 
ch io ay Apel oat 
Sc atl acs we iC . }tenmL 


O00,.f2 2, £2 iam 06D eettbamtos rael ewerd § paste 
a ee Stell to owe ae.4 
ce .O8 wisetoe ont BG. ioe t14 
Poe. t -: Ls fotey eu Pili tton weccabensnl 3 
ONS .f Mes L ao1sN esh: eee (temo toe Tove © sent 
000.5 fS  FeummA on o.gROEn2 tmyooA, eeoootg earras a 
O0d.d. . 3f€ tadoren ax a ere: oan tine « eed trai 


S60. a&e | ) . Jak F ; ea i hy ‘a 














000,32 3°, £2 dots eub .20f se felaaon 2po9s0%G 
00° .£ OS vueridet 900 w..seceblonven 2 mee ~iea2d 
o08,f |. af [iGA 6UD seus seecene gttomyaget —tesd 
ifsd eno .THUODDA 
GOs, £ Lt faites surh te ere rser ,teoL peiom pate aT 
ean $ fornrol tovet sore 


O02 2 : gfe fey A Suh Sree eer ea ee "8G! 
600 ..£3 siG ¥ it eu5 a obo cod é 




















? -~ 
ve 


yi? Betoiret sa yteoustat Asie eaareta sista 9a 

edd to obte ¢ibars eat aatelqque eetici wend ee tt 
£8 tedoscO te tavoess io contiad dem. oad ae Se 
or Sa, 





aw) 
4 
4 


PROBLEM NO. 219. 
(N.Y..C.P.A. Examination) 


A syncicate, owning in fee large tracts of timber, makes a 
contract of sale with a lumber company for 500,000, 000 feet of 
standing timber, at the rate of $3 per M feet. Phe lumber company 
agrees to cut and pey for the timber within a period of four years 
and guarantees that the following shall be the minimum amount to 
pe cut anc paid for in each of the four years, payments to be 
made in cash at the end of each six months: 


MINIMUM 
MINIMUM ANNUAL 
GUARANTEED PAYMENTS WHEN PAYABLE 


First yeer,... 80,000,000 feet % 240,000 (Jun.30,... $ 120,000 
(Yar. Bl «ak 120,000 


Second year,.. 90,000,000 feet 270,000 (Jun.30,.<. 135,000 
(hee. sive 135,000 


Third year,... 100,000,000 feet 300,000 (Jun.30,... | 150,000 
(DepeS2,seu,04 150000 


rourth year,.. 120,000,000 feet 960 ,000.(dun.50, ses 180,000 
; LDeted Lgie oe 186 , O00 





590,000,000 fect $1,170,000 : $1,170,000 


The syndicate, desiring to anticipate the payments under its 
contract, applies to its bankers for cash value of the contract, 
offering as security the contract itself and a mortgage on the 
timber land. What is the present worth of the contract, cal- 
culated on a 6% basis? 


Rer + 435-4 © 


‘and 
ep) 
fim 





wketie 

Ze. pend foet. 

Vitam "Yad: mis 
he es ey: water 

og den Ooms 


ad oft o¢nemysq ,.2% sep Must ont to fpss nk ‘ot, 5 Sar, nal tele “oe 
veritrom. xia dose te bee od d@ Mess AP esen 
ar Pe: , 
x Sait). sare 
ee ee , JAMA - nse aos 
y. 4 1s . fe Fase — r a K? % ies i 
“MIG AYAG WARY 4 OTUGIYAT Tt SPMARAUD. a 
ole [ @ «ee eQSeMttGs CCO.OMS = soe2 060,080,408 ” soe, 198y Tene 
cy z { <> @ ait 5900} oe oe 
e 2 bend as 
o eis, Ls re 
} iv =f ee ot) 000. Ovs saan “obo ,abe, oe * “e* + ght oy “Seok 
‘, eed | an *~ 
s z = sz <7" Te slapd), a tbe . beet os Oring 
ut I Ss 2 ie ueian ae me ‘ew Se ey F Bop bef 
aPe are ~veaGEetiut)} 000,008 tos? 000,060,00f ...,a9ey S4att 
DO OeL oe eget eter go Late Si. Aer yw Mie 
Fee 2 aw - , a7} , 4 mY é Sete: Hus = ae A 3 Bi joe e P 
a Re fat’ ran es > 
00 ,OBT wee (OSs fit} O09. 005 toot 000,000,08L .., 188 “AtiO 
OS. O85 0g lGe 96. i2. eas he iy sk 
or ee petal We TT 9 ca FL set Sia Siies 
~ : e ~~ 
00 OVE, £2 QCG.¢ ovI. £3 tost= eee 
ined pore = ie Blaise ty o¥. j St map nnnind Pi ee a J 
oe _ Rea: As Se hae ke OF ee = os i, ee 
i a nape : inf ns 8 eee ite ry & peer an - 
“eth. “rotons etnemyag Sas etse io Tta8 a3 rete ee6 StH IETS: - ont? . 
Pile oe oe Po Py arts fis. a:fsy zlese é Lfnt: et 0 25 treet ott od, .2 rics se ) +o8% ae @ 
‘art ao opsotiom s brs *feeti tastings ocly. ge insoge 2B. cael bad 
~ ee =| o\ eee ~ ; . mm 
~f[2> ,t5etTines ead To Mitow oases ‘ort et a oie pie if 
i Vetesaq XO 2 no’ B6Feivo 
- oe J “y\ 
ri Saeed 2205 
Bs 
bol 
ace at F 7 A 
. ; om a 4 ak 
ate: a eye aes 
¢ 


ae seeding 
Font 9 


atk 


O00. 


A t 


ieee 


Io... 


2 
ares Fo 


nth 


= 


te pene fo 35% “eee aectinivo,, oF 555° een 
Og. 


5% at if rf: 


4 


aE a af oF Tiedt 


eee a “x e 
ers Om ih AOR or 


—* a4 
— 


oheninext oA. 203 “iy | : 


» i ee. 


107 Yasgnes rodmyl 8 ditw efse —o 2 38¥tabo 
aaee ™o ete ertt. +s <Totmts: ar * Sea 

nid ee reiant eit ot: Taq hoe ed’ oF eoene™ 

aaivoL{lot ont, .7a0ty. Booth retain ° 5 














i 8 eee eae ae. *. OG 144 


ay) 
a 
td 


COST ACCOUNTING 
PROBLEM NO. 620. 
CM. Ys C.P.A, Examination) 
A company of bicycle manufacturers makes up its accounts 
December o1, i696, for the year. The following are the debits 


to the profit end loss account: 


Baw oeLetinl cn Wiens gamely 1, 1096, e-.cnac ese ne nase sees Gia, 900 
Finished machines on hand January Lp kote 1600 wheels 


fh Reet ark sae ee ee SCRE EE Ae Dain sip aad tae ae eto wc ; 48,000. 
Purchases OF, TOOLS ee ee ee wo +n 2 SS SALE RAPS ee Sey re ae 62,500 
ER ge eae ain ta sok xl 6 5 see be x 2. i prt as tee ogo 


Manufacturing sha ae isés: Coal, repeirs, paint, varnish, 
superintendent's salaries, unproductive lsbor and 
sunGry other expenses,.....5..«- Dae wn edt tn xe rahe Aap) Eig gmateP 24,000 
AOR, COMI eS Leia esc nee a es ce ms arlene dune taiealenar areata ONO p cat 1 8 
Branch expenses, rents, salaries and miscellaneous,...... 40,000 
Selling expenses: Travelers! salaries, discounts, rebates 


and miscella aneous, s 8 es 24 Ce Se Coe Ce ee ew 8 ee Se ES oe woe *# a2 es Oe ye a SO 30, 000 
Bad eC we ae he ar Alle eae oe 6 koe a) ele a4 eere ee @e@2. ©4024 @ © ea @2@ 6 BSB 8,000 
DEPTeCISviOn COL MACRIGeTY SHG plantiy...acsccsacesvios sas Lg 5.500 


The sales for the year were 6,000 wheels, yielding $540,000; 
the raw material on hand December 31, 1896, taken et cost was 
©4,000, and the finished heels in stock ready for sale numbered 
800. Prerare an account from the abcve, shoving (a) number of 
wheels manufactured, (0) the cost ver xheel, (c) the gross 
manufacturing pants t, (ad) the final net result, including in the 
profit and loss account the stock of finished wheels on hand 
December 21 at their cost as shown by the acecnta. 


Ref. 5=5 
























dieses. sti om eodsm exo 
etideb odd ox ‘pabrolse®. 


mI 


Bay 


MS ns dco. coca ee Uy hee x0 
: eLoors Goal 508. at ‘ctbast Bret om 

Saree 

702 .S8 eS rt 


2.38 see 


2 8 Sh gece Sikh wig «ae al i ny ee mg 


4 
" to tiear  babee occas ee ee OF ‘ 


iolmasv gdmisg peitsget .fsod. § 


v 


ome socal evitorbercag sees 


FOO 6& GOORG Te aed eee denne tan BiSe © yabaue 
ef mrs 
NG *-n PS SO ee «+ oe a Weide iin «0p. apie ag ce "asuegh 
00.03 

“enue 


otaee suoonstfeoala fas asits[sa ,ettst .asenegqxe donetTd 
Ms actater a,einvoosth (eetisica are fsyca? :aeenogze tise 


mater Tro ttsseteesarsseessecsesee reservar es gACOOTSLISORE mM bas. . 
Ow a CHEN OER Seed eb ee seed ah 806.6 eee yee eee Sees 
OE 5S tent tee een newsmen sole ghitley bas yveenidoss to nolteivozqed 


,000 acrte geldlery .eloods 600, 3 9197 sy “Sad 20 goles od 
“ #200 ts Moxst .desr «te sedmecet trad. mo folvoetem wer 

Fail ofsa sot ybcot Xsota gt efsed? bedatnkt eft bac meee a 

20 seca (2) 74 ee qovece eat goxt. ROSES te Se 3 

asorm stit (2) faedr xs teon ait {c} gbenes aos: gf 

eas mt get uloal ,gtiuest. ton Isntt sds (b) titord at Berio 

d ao eleedz bodsintt te woose ent favoces. seof bas. tito q 

| eetayocos ont US arode Ba #e00 niedt ¢2 Is eda 








213 


PROBLEM NO. 3321. 
(N.Y. O.P.A. Examination) 


A manutecturing company after erecting and equipping its 
Factory, placing‘orders for materials and hiring e working force 
of skilled : sechanios, commences operaticns. In sdcdition to the 
financial accounts, arrangements have been made to conduct cost 
accounts from the outset and the current details thereof grouped 
under Account titles and collated upon "forms" show the follow- 
ing activities: 


Form I Receiving Sheet 


Raw materials received into storeroom 7,701.37 
" II Consumption sheet ~ waterials 
Raw materials consumed 6,051.69 


n Iit Consumption sheet -— manufacturing 
Partly made goods consumed, combining 
values of materials 3,2080-+-82 
and of labor 3,106.26 
‘Previously expended, and to which 
further materials and labor value 
were added. 
8 IV Production sheet 
Manufactured product, comoining values 
of material $,877.51 
and of labor 13,137.13 
As. ver manufacturing reports, dis- 
charging requisitions, collated on 
| forms IT and III. 
" VV Gost Sheet | 
Finished wares transferred from factory 
ta wa iehiabwana, carrying prime cost of 
caterials = 5,890.69 
and of lsbor 6,875.04 
Adding further to the material cost 
2353.44 and $828. 62, end to the labor 
cost $1,331.26 and $1,775 for factory 
expenses respectively in each instance. 


m” VI Disposition sheet re \ 
Total cost ia finished ~sres sold 14,827.04 
Proceeds of sales 17,145.40 


The register of manufacturing reports shows total application 
of direct Labor to cost in the amount of £10,020. 87 and the pay- 
rolis show exrpenciture for labor in the amount of $10, 456.16 5. 


Only requisitions discharged by menufacturing reports are 
collated on the Consumption Sheets for creait to aecounts in the 
faterials and Manufacturine Ledgers. 
154 






































ofS | 
“£68 08 MIGORT 7 
| (soltentaexd .A.9.0 Yai 

ett seiagivpe bas ~aidosis setts yaequeo sabards 


So70t gatvaor s satatd bas eisisotsm rot bi i 

eas SF aoltisic af -caoigesego BH9nSmGCD ,o¢ insdoer 
200 Jorbros of sisx aesd eved atmenegaciis (een 7305 

Ssquors footed? elictob snemme edt bas teervo.odd mor! 

<70LL6t odt rods *ensot* mogy Letsilos Sms esitist tn 
28 


tooda anivicosh . 
‘YE.LOv.T  mooxstote oft bovisoss elatiotin wef or 
alsitetcs: « teorde ott qtmranod > tae dis | 
8. L65,3 - beawemoe elsiietaa wah 5 aa 
Miestociwas: - toode nettquyeno0 TIT *# 
acinidaos ,hssrameo shova eben yftred 


S8,55,5 efsicséas to renga 
0Se50L,¢ _ sodsi to Bas 


fold of fae ,Sehnecrs vfewetverT 
eulsvy todel base elstreten teidtut 
Sac ots 
tesde aoftorSort VY.. © 
asuisv ~rintdmed ~tovbors Sortostnnacif ia 
g : ict¢ete: I6 
om 4 xodef Yo one 
w~aib . stzogex siizetocstunsn r9¢ sh 
mo beds ‘ifes ,enotsietyupsr entgredo 
| -IIT bac YI anxe? | oer 
 geedg fea). V *™ 
Tistenecers sores Hedeigtk® 
i QuiyriIso ,andoTegs> os 
alstusts”. 
tod=i 29 Sa6 ) 
fs00 f{[-tteten saz of? Tediiut 3mFbb" es 
todsel sat at Bre 926-8885 Drs BB. 608 f : af 
TroFost zi ; ort. {) bas 08. léagte +500 
»Sonsfent doss x} "yLlevidoequen seac50x9 : 
| tsode nolticoqerc Iv Big 
33. 993,4f bioe coir  berleiatt I6 teoo Isto? j 
O8.cal SL fies esisa to ebssoort — | 


wsctost? mort 5 
to gaos out 


Motseotiqge Istod erode asr1oyss qatuute-twaes: to =efetages sat 
“YS¢ ons Dar 15.060 OL, to tmyoms sat at soos of + at woorib 
> WOL-885,0L Yo tavous edt mt redef 20? out iinsaxe wrote eff 


SIs asvitoqet sait-tostuncy Vd hegtedosiéb eacitieinupss yind — 
ed? mt aiasocus of $idoz0 tot etsode soltquyencS eit no betel. 


Bee eibniaioaireris ae. 
o F 


- aria 

rake 

a? Pn dy 7s 
a 





O14 


The medium for posting the charges and offsetting credits 
to manufacturing accounts and for posting the credits to materials 
accounts is the Consumption Journal. 


The mecium for posting the charges to finished wares 
accounts end the offsetting credits to manufacturing accounts 
is the Cost Journal. 3 


All waterials, manufacturing and finished wares accounts 
carry units and price in eash specific. account, but only aggre- 
gates or controlling accounts are here dealt with. 


eet an 


bt 


Frame consumption Journal and Cost Journal entries. Show 
the subjects and amounts cf charges and credits to the several 
ledgers in the cost system, also the charges and credits to 
General Ledger Accounts from data developed by the Cost Records. 
Ref. 235-4 

PROBLEM NO. 3238. 

(N.Y. C.P.A, Examination) 


A corporation's inventory on Jan. 2, 1909 was: 


Har aeri elepenck sae. MGR . TGECR, CAA. 4m 20°85 9,467.18 
Gooas ar Process, es S S 2 Se HS a Oe CS SS 2 © 4 Be & 0 Se SS @ we Ce Se ee Se UA 4, Bisg.33 
pa wee ww, (tha 2424}. . Gin Pe ROG Wane. FA he Ag I28t.8 18,673.18 


Made up COTES SNCs teat Spee wate Relet eee a aes. cy arp is eee 6 eRe oe whe whe oo 19,753.47 





The corporation suffered a fire loss on May 1, 1909; the in- 
terim transactions affecting merchandising, manufacturing and 
pliant were as follows: 


Parchases rat materials,.....-.....- ee a ors ce e's 46,375.82 
POR GL Ve keh, Da. Cul vy esis «ase Sk Sw wae iectne 32,618.06 
Manufacturing expensés,....... eee es AiG eee Pepe al Ma sai p ie tare ee 5,157.20 
Bete) Shay FOO Sd OL TLS, et ae eee ek ween es : 400.00 
EP EROON OCR on enn ain ww beng Rene ey ee eee ae ieee e 7,618.35 
RN Se ADS ikiea's oe & tok + a ais 6% 6: pao vin we we es we wee . 360.22 
Oy er NG orc aT i (als oie cu, ome oo mo ar a8 monte ne Bae a ee 2.561 sie 
ne eo a vw wo ww ote Sek Maat, 95,714.66 
Allowances to customers,............ igre ee eat Ila 310.18 
Re ee Se ea he aa wie de aie oe ey ew see 8 ; 2;2607.2a9 
ae a te os a aT ENE nl in <n. Wilacm wince ee & eS 8's 361.22 


























S15 


et fhsizo anitseatto bas esgisdo edt aattect 
“fetrstem of etibeto eft gatteoq rot bas a ST 
7 . eLermot rol tamiancd © “on al ef 


sorsr bodcint? of esreno edt gatteod 10% ‘nuttes oct 
etnyooos antrutoe tunsin ot etibsto grivtssite sd? Bn terodeee 
-faniwol teo0 sug at 


atnwooos sets7 Bbedeinit tke x gai xusen turer oletrodam LEA 
~s1535 vino tud .tmyooos ofttesge deco mi soizg bne sfinu vite 
wdtic tisob etsd ets etmrooss gailloismos bit 






mode? .eesixrtas {sarge te00 Sas Ienxw0t met rtqnseanos enstt 
ferevea edt o¢ attbers Bas eositsdo to etayoms bis pt gerotioe: 
Bie atibero Bas eegtedo edt oefs .neteye teco ent al ategd 
-sbrooef teo00 edt yd heqoleveh stsh mOLt admisoooA tegbed Teter 
bes ston 
-GSS8 .O% MIIAONT 
(noitemioexsd «4.9.9 «¥.%) 


seer 90CL .S -astl mo yzeotineval afro igerogze A 


BI .¥s Pd Ses Pe ee eee ee 2 es ¢@ 2' es pees ee ghlektetss: wel 
c-815 8 dieéea cde cha bebe tt et caere pe vcceenewss g@QS00TY BE B5000 
BP. SvOi08 cane scckiaeeeeeeeee eee eR 
vb: 280.68 ieteeeseecsageeersecersccereneenaye s ¢e@BOO3 fis eben 





“ni oft <208I .f ys mo seol etit « bereTive moitszegrco edT 
bus Batwics ims: ae eae soitostis esoticsanszt mixrot 
. ; ravolfot | as orer hide 


SS.29E, 503 san er Canaan cat ste ate ee 

&0.8f£3,1&8 oa ha ae ee . ve veces bieq 1odet ovis ze} 

os. Yer ,é2 vested tec e vate ns cee a gOORROILO Sh 

00.005 | PE ee perwcesee gB00LtIO Dis MOOF 

65.-81f3,.7 : : eo wtereeveuvecsvesserensne tet p ane signee Mites 

8S.08é gcc weuss’s he lwglen bale abide Gale uLee bate ered pin way eer core 
$f£.{£82.S ae weeececcvedusesenceec cases: g@Qanogxe S6g6880 9) 
90.8f7.ce ee kek cm wpe » hse ell wails + oy Ol ke bye aoe eee 
GS Ee ee ah Ae wae ceapees soe gRTSMOSELO Ce # 170. 

€s .Tol.& qua’ sy o © © 6 gal» «<4 ate mle woe ee gutenodeno To s oo 


83£08 /_ eee oe errr Oe ee ‘sr ene © ritetesarasee @@B@RCOUNG 





215 


The figures ascertained for the years 1906, 1907 and 1908, 
for the identical items, were as follows: 


1906 1907 
Purchases raz materials,...... #186,320,16 $104,360.22 
Productive laocor paid. out,. 90,323.24 61,212.06 
Manufacturing expenses,....... 30, 1050616 16,208.17 
Rent of show room and offices. 1, DUU.0G 1,300.00 
RI AAR LTS vin 6d ou 6 oles wk ew IO 1,000.00 750.00 
wad UU. CRDONSESs «hice eee ome 28,672.18 16,314.12 
WERE EAL CXOSTIBOE ce lee oun aus «mn 2 DO, £50.36 ©,746.22 
BAY thas athe eRa ated. las abe es Seems ae sakes 386,924.18 317,506.01 
Allowances to customers,...... Lpdh ede sOUHa tO 
Returns.of. cuetomers, «2 ...6- 0s 8,614.08 4,106.18 
FEBRG DUPCUA SEES eaat mpgeomit = 40 500.00 540.33 

Inventories beginning 
of year 

ae Da sage ts i Ee Si a ee ne ae 39,2809-16 51,916.00 
WOGC Er aie PYOOCEE gc wine oh be oie 6,104.1 a, 104012 
MOORE Me COOU Seis crise otis 6s os GL»ooo~L0 LY ,OUG «ae 


ARN.) apis ae aes Pe SCs £ Cee ROS Sw 


1? 200.96 


17,723.96 


1908 


£157 ,516.20 


72,106.14 
20,316.23 
1,300.00 
1,000.00 
22,012.18 
11,116.20 


$21,672.18 


975.00 
a 67.22 
409.00 


33 436.20 
3,726.18 
18,622.12 


18,264.18 


You are empioyed by the assurers: aij policies concur under 
the 80% coinsurance clause and the insured claims his loss is 
42-1/2% of the prime cost of his goods and value of his machinery 
at time of the fire; the percentage claim is adjusted at that 


figure. 


The amount of insurance in force was as follows: 


merchandise stock, $40,000; on plant $12,500. 


on 


Prepare requisite statements showing the value of the as- 


sets destroyed. 


Ref. 30-2 


ozs. 


~-B0eL yoes | | Se ees 
OS. or ce. Te ls Ss. oat bOL> Of. G65. are Pes Ay 





‘zwebay auwomes asioflog fis ineminue 
ek aaol etd eminfo beriteni edt bar seuefo sonarmeniod ies 
yreatidors ald to oulsv bas shoog etd to te0o omitg eff to RE\ Loe 
Yaedt is Setsauytis et mftalo 
:evoftfot es 


ro 


SST soxot a 
008,852 Poach mc {00 085. foots ‘sathnsdovem 


—6f Sit to ouisy sit Werne ier ala | ae tatoos steqerT 
















.SROo. 4 
‘ ~ “a 7 " 7 - 7 

* ,4 » > 
ee a het 


‘ _F Sof 
Py 7 


 elsizgets: 
of.aof, a a0.8f8.52 : 2§ 886, +22 ot TO 4 : 
ese aie. » 805. af rear. eho «2 Qk 
co. 008. ir 00.008.£ 00.002 .£ -eco lito & 

~ 06.000 ,.£ 00 .0éE9 - 00,000 .. Py ee | | 
Sf. SIF oa Si. +fE, of 8f.STa@,8S fete nee eee 
Oe. afr. if $5.3987, ‘e: -O£.0aT Cf haces teen eee e (BOS 
SL.S74.[Sé £0. a0e. TLS Sf. S80. 582 eee eee oe eee 
00. 27¢e é%.209,2 SeOLf,f sess + eg STONOFENS ot esonswol fa 
£S. Tar ,¢ Sf.30£,% 90. 5£5,8 Pre ae -,etamoteso to entusen 
60. 204 &S.032 00.008 —— witrctreere+«qpeandougg, tasld 

“gatartged oeizosseval 
tssy to: 

OS.0f£5 o2 OS .0f6,f¢ e288 .e& -_* “ef eee west 
Si.9ST,¢ . Qf.TOL.€ SfL.8Ofyo os seweessone gSBO00T] at erat 
al .g&a, ef Gs ..506, Ti Or. €68,. 28 OF BD 0008 0h 4 we Rigs m 1 B5003 ron 
BL PSg.8L B8.250,3i Be. 858 T£ eepreererrerer reser oper) 


ait yd. Seyofque o1s yoy 


meoreq sat. gorkt edt to entt me 
oonfmvent to tayone oft sori? 


-beyorteob | atee 


’ c-08 . teh 
Era § ’ - 


216 
PROBLEM NO. 2323. 
(N.Y. C.P.A. Examination) 
The Allen Automobile Co. assembles cars on orders only. 


The Sania is a synopsis of its factory activities for a 
given period 


peeamrorchaged x... gizo. You, nah. 1S. 20 ever. Cees ee mereco>, 000 
Parts manufactured (material cost), ai. Roget. os eG4.508.% 225,000 
Productive labor (125 per cent of materials) jue i<.s6% - 281,250 
PaCLOrPuespenséis. 2e22 55. Lace. » Maes on Bs PES Sis . 451,300 
Cost of cars: 
Pata pur oiamed pean aimed ps oe. COED. ke es - - 74. Sane 95 , 000 
Parctovmanmitectured (materta’ coet) op ised.. 0. 0) 06... 75,000 
Productive labor (145 per cent of material),......... ‘188,500 
Pact Geese are 20a 8: sede ones... 22. o2 C2RS4 080% 2) 226, 200 
Material on hand, unmanufactured, . Pee ae oer satiarde: 41% 200, 000 


Create a technical trial balance of the cost ledger and an 
inventory of the stock room. : 


164 


000. roa e. ee ee 
000, d&& | 
das, L383 


003. f2p Meee sc ane 
; ‘ i ol is 


a” 


* 


090,~.¢¢ 
000.2? 


eet hath gag Pleas >, 


ee aa a | 


oO8 Bat Lesag(tbizeten to pi ry ty” Ss a for 
Se Bas - EN sr See SHR 6 Seer 
600,008 |... Tetreerer ss she pbometos Rumacaey 


me brs 





PROELEM NO, 324. ol? 
(N.Y. C.P.A. Examination) 


n January 1, 1914, The Arlington Company's records show 
the following condition of its accounts: 


Inventory of raw materials, $46,864.26; accrued factory pay- 
roll, applied and distributed, $2,495.34; goods in process at 
prime cost, $191,665.32; the further value of $34,111.51 for the 
Tactory overhead, also é36, 324.76 to cover superintendence; 
finished goods in stock show a total cost of $64,968.03. 


During the period from January 1 to December 3}, 1914, pure 
chases of raw materials amounted to $241,849.35; factory pay-. 
rolls, $377,381.70; superintendence, $114,300; factory expenses, 
including wages not applied to cost accounts, $74,538; interest 
paid on notes, $3,500; dividends received, $15,013. 


During the period mentioned, the operations in the factory 
¢omprised: raw materials requisitioned for sonsumption, 
239,461.08; wages applied and distributed to manufacturing cost, 
7560,751.20; and to factoxy expenses, $17,878.17, included in 
the sum stated in the paragraph soove. 


There were also foywarded from the factory to the warehouse, 
finished goods at prime’cost, covering materials, $235,687.74, 
and labor, $355,001.25. The cost of goods sold during the year 
was $755,849.70, and the proceeds from goods sold, $907,019.64. 


On December 31, 1914, the goods in process included, in 
addition to prime cost, factory overhead amounting to $25,317.06, 
and superintendence, $38,035.98, and accrued factory pay-roll, 
applied and distributed, amounting to $3,743.01, | 


Show the cost controlling accounts as they would appear in 
the general ledger, their overation, and the resulting net 
profit. 


Ref. 37-6 
164 



























“oss OV SOME 
rode abhzoost e tyme ymod notgailta ofT. .bf0L S yrseaet =O no 
to ‘nolf thane scivolle® oft 


Tia 


: : WS 7 & ‘ 
-yeq yrotoset Serrs99s -86 888.599 _aleizeten WSt to ‘grotaeval roa 
ts sssootg mi ehooy bE. SES 4S: peiudirterb bas betiaque ffeoz 
4s xot [2-f12.38% to euler veditaut odt ;So.c00.f8f ase09 ealtd ~ 
. -gonebaotaizsgve xsvoo Of OF. BEE. SEy oeis ,psedteve YtOF9 
see aes ¥6 ¢s00 Istot e rote foote ai Gg we 


os f vrarast mozt noize4 oat gatied one 
to ssesds 







ref .f£2 xedmeoec 


Tc > 
=eed yrovost -20.€28, £38. a¢ pegavoms slaiwetss Ter. a 
-OF. £38, ST E9 ,effox 


,osanecxs ¥TQToSt -008,dI5¢ ,sonebnevaire we 
taototal 730d, 853 ,etauo0e8 seco of Hetiqae Tom, 8° pbs onS 
2Bf0,els ,bevieost ebrebivib 7006,c> «8eton ao bisa 


yxotest edt mi anoitszsgo edt ,benoitaes Bofseq ed? gaitwa -.. 
 moitgimenos sot bexoitiegupot eleizsten maz :dbsoitqse 
.ta0o yaimudostuase ot betydpztetb bas bot tay 4 260.£85 .2é6 

mi bsbulomg ,VL.8T8.SLy ,Seenee® YUOTsS  50S.Le9,08 

| .svods rpeteq ode at betate awe > 


wogete edt ot yrotost odt moyt pobteryot esis exe esedt a 
(bt. 989.086 .sisizeteu 3aétevoo .yeoo ‘saitg ts Bbhoom podatalt 
geoy od? saiztub bios aboog to #609 Sh BS. L00,2884 ,3008 ban 
aTD GL0, 808 «blo sbooy mogt BpSe0074 eid brs ,OT-Cb8.ae%8 Ber 

ai .bsbufomi seso0ry =f eboo; edt .bf0L .+% asdmeost sO. 
.BO.TLE, S89 OF naifavoas bsodieve gofost 4600 emkic of mortibbs — 
~Llowyeq yrotest beurpoe SHE 4 {2.280 .8e3 _,somebactatsoys ‘bas 
-f0.685,86 of gabvavome sbotudiztels bas beliqgs 


sinicos an bifozta0o teoo sdt wods 
~noitszege shoe topbet Iazones ott 
+8 be ae 


go¥8 ter 


at wegqqs biluew yodt ss 
tea gakviuect ecg bas 


pag 


ay) 
I 
oO 


PROBLEM NO. 325. 
(N.Y. C.P.A. Examination) 
The factory of an automobile company assembles its cars 


only on receipt of orders from the main office A summary of the 
factery operations for a certain period is as follows: 


PAPCG AOE BC OS OO 6 eee We cannon omar a .. $162,500 
Parts manufactured (material cost), . Cota 563,500 
Procuctive labor (125% of material),...... A 703,125 
Oe I a de Ras alle ca Law ite py ey aes epee g0OO 
Cost of cars: 
Pat pe ete Ore CGE, bie ios 6c © dim och wine 137,500 
Perte manttactnrea (material cost},..:..- 187,500 
Procuetlive labor (145% of material),..... ..471,350 
ae ie a a a ue, Alenia ees OOM a i oi cae Wk = “ 565 ,500 
MaAvGrial on hand, -ummanutactured,.....-....++ 500,000 . 


Prepare a technical trial balance of the cost ledger and 
an inventory of the stock room. 


Ref. 40-4 
PROBLEM NO. 63 


(N.Y. G.P.A. Examination) 


A firm manufacturing cloaks, that was insured against burg-— 
lary, claims to have been robbed on the night of Sept. 10. The 
proof of loss, filed by the assured, Con kei nee two items; A, 600 
Cloaks $138,000; B, silk, 1,000 yards, $1,500. On Jan. 1 an in- 
ventory had been taken of stock on hand consisting of cloaks, 
cloth and silk amounting to $118,500, the particulars of which 
were lost or destroyed. 


An analysis of the firm's booxs showed the follow ing: 
Purchases of spe 57,500 yards at a! 
Purchases of silk 10,009 yards at $2 
6,000 cloaks were hamufactured consuming cloth 40,000 yards at yt 
silk 10,000 yards 3 
9,000 cloaks were sold between Jan. 1 and Sept. 10 


Goat of sales, per cloek, for material,.......i......- ue ie 
Cost of sales, per cloak, for labor and sundried,....... .7 $17 
Invercereicess. 13, <¢,500 cloaks,...2.08.2..... Peer e Y: 
Lege hd VASES CLO Ag ee cna # 
Sow Farue: SGlixe ee wei 2 


‘ 


Prepare a report proving or disproving the claim. 


Ref. 43-3 
164 


Nis - ee. co, Sad © 
poe) re 7 fae nes : a 
7 : es 1 

; y io 


fac) w | | 
288 ON MEIGORT | 
(soittentmexd .A.¢.9 .¥on) gaits 


6xs9 sii asidmeses yasqnoo of téomotus as to yrotost exT | 7 
edd fo yYieumvs A .coitto atem edt mort egebzo to veteoss. #0 vino — 


:awolfot as at botieq alevies 6 10% emoitarego yrosost — 















Oe .s35f3 -* eo eee ae hae «+e ewe -»»- hesedozerg etistT * aos 
ee SOS | nas open (te0o Isizetan) borstes twas efcet’ 

of 2) Ss eee . tieiteden to }28I) redsI avitsudox¢ 

000,886. £ «2.3: < + ae ite ee teen eeren  SBMSQKE YROTOST 

, / 3@ms9 to fe00 

QUE WEE) pba ee ee eee DsuyeNoo .sssiowrd efrs4 

OOP gVOE . naive .ta00 fsiissex) detitostuasa at st 

Oss ITS > ......(Letretem to S255) rodel evidoubost 

002, é32 ere ae ¢ wae Mee peeseu +g O9G29GX9 YIotssT 

000.002 aed Pike ale Seintostucenmy .basd ao Leiressk. 


Sas tsgbol tsco edt to someled Isitt Isoiaitoet 2 eteqe<T 
-200% goots edt to yrotmevai as 


2-0 .tof 


(mottsmimex® .4,9.0 .Y-.1) 


~gind genisns bourent ser ted? .aaselfo anizuvostunsm arit Aa . 
sat .Of .tg798 to tdutm ed? ao Seddor mosd sysd of agielfo .yzsel 
COe .A jemsti owt bomisinoo .beivess edt yd LeLkt .seol te teord 
wat as f .teb oO .006,f3 ,sbiey OOO. .afts .8 :000,.858 exsolo 
.SAsolo to galte tenon Sued so Joote te noxet nocd Seq Yrotney - 
doidw to sisivoltusq sdt ,008.8LL6 of giivtavoms ilies bas diofo 

-beyouteeh zo tsol e198 


cgnivellot sdt bewrodta siood e'mrit sdt to eleyleas cA. 
if ts ebhisy 0C8.%C dtolo to sesedout 
. | | &$ ts ebtey CO0,0f ALis to ssasdozt 
fy ts sbtsy 090,08 defo eatamenos berucosivas: sisr axsofo 000,82 
&¢ ts ebtsy 000,0L xffe | 


Of «t992 fas £ .asl meewted blog sxewetsofo 000.8 
O88 5. os. ao ee eee +sfeizetas to? .dsole t9q .eolse to teod 
or ee ee Pe -Seizhave bas zods{ sot ,xsole teq ,a0fss to 2900 


Thess’ crue rer? seteols 00d.§ okt -tqe3 yxotneval 
Bie ie fie ats dtofs ehzrey ¢,.Si ; | 

B - Waenw <pwaik .fs Alfie shizsy 000.2 | : Ns 

-misio edt anivozgeth zo 3atverq troqez s srsgert 7 
bOL cma wee 


PROBLEM NO. 327. 219 
(N.¥. C.P.A. Examination) 


A manufacturing corporation operating a system of cost ac- 
counts, presents the following data, relating to production as at 
Jan; 1, 1915; raw materials in storeroom $31,242.84; factory vay 
roll applied and distributed but not paid, 4 days, $1,663.56; 
goods in process at prime cost $127,776.88; in addition, factory 
overhead $16,074.34; management expenses, $34,149.84; finished 
product in stock $43,312.02. 


The financial operations during the year comprehend; pur- 
chases of raw material $160,833.90; factory pay rolls $251,587.80; 
factory expenses, including wages not applied to cost accounts, 
$49,698; management expenses $76,300. 


The manufacturing operations comprehend: raw materials 
issued on requisitions for consumption £159,640.68; wages applied 
and distributed to cost of manufacturing $240,500.80 and to 
factory expenses 11,918.78, including the sum. stated in the 
preceding paragraph. 


Finished goods transferred from factory to ware rooms at 
prime cost; materials $157,085.16 and labor $236,667.50. © 


At the close of the year the goods in process included, in 
addition to prime cost, factory expenses $16,878.04, management 
expenses $25,353.32 and factory pay roll for four days amounting 


to $3,495.34, which has been applied and distributed, though not 
due. ai 


The percentage of overhead charged to finished godds is to 
correspond with that of the previous year. 


Prepare in detail the accounts of the cost ledger. 


Ref. 42-6 
164 


> ee ele DS at A 

|) a re y ; 
; : = . J" ya 

ha & a” 


ers 4 eae 
(noitentmexd AFD an 




























~os $edo to moteya « gnitstoge polterom09 sabautos ae 

ts as moitorboty ct yatteles ~Stsb gaivollot edt etaseezs ,atayoo 

YS Yrotost ;58.SAS L&2 moorsrote +f afsirotem'mez 72Lel I. 1 

(0C.533,f5 .syab 2 ,bieq ton tud betudiateih ban bsifqqe [for 
Yrosost .coisihhs at ;38.8V0 983 teoo peoata res ‘see00tg at sboog 

bedeintt ao. GEL hGe AOR inong whee Deachdzeve : 

| -€ Sie, EB aE toubord 


mae bredetqu08s tsey ody yoited asoitszezo Isis ooontt “oat 
:08.°8¢, 1686 eLLfor XSI yrovost Os. eta Q8r2 Letretsm ret: to osesco 
.Situeoss taoo o¢ betiqys toa es gnifvlomg ,scanesqxe yrotest - 
| | +008 « Ov, asenogxe Ineneganen 2803, 0R2 





~ 


efetretsm wer :Snodetqmoo anoitereqe sabwios dagm oat ; 
Ssilqas eeger ,90.085,c8L9 aoltqayesoo ze? anotiieivper so beveok ‘ 
ot bas 08. 008 0362 saiwdostvasm to teoo ot Detudixztelb bas 

edt ai Setsts ove odd gnthuloar ,8%. ef2,{15 asenoqxs yrotost 

} -igergersg gaibeos2q 


ts saoor oten oF ,Vrotost mort Serre tanest Eboor bedelalt ; 
.O8.998,988% sodsl Bas of. ca. TGI° aleiztetan jte02 omizg 


mi .bsbuloat asesorg at eboon sd¢ sesy sdt to seolo odd FA. 
iaomegenss .30.878.5£2 ssamagxus yrotsset .da0d emtmg oF molt ibbs 
naitevons eysb aet 20% [for YSq, Yrotost bas 82.e22.283 seaneqxe 
tox Saved?  ~betrdiazteth bag bs tage asd ead fo Ltr 5-208,83 ot - 
; Pa; 4p - 


of at  ebdog bodeinti ot begredo Bsodrero to onetacorey edT 
) -tesy ayolvety edt to sede sein cece 


-tsygbol $200 ont to atmroocos ont. fieteb ai exeqort 


oo a ; S-3) 208 - 
dal i ; 


PROBLEM NO. 228. 220. 
(N.Y. C.P.A. Examination) 


he books of a manufacturing concern, operating under a 
system of cost accounts, show the following conditions og the 
opening of the fiscal year: raw materials in stroeroom $15,621.42; 
factory pay soll applied and distributed but not nse Pas days 
(Gaim? B: partly manufactured goods, at prime cost, $63,888.44, 
and the further value of $8,037.17, to cover factory burden, 
also $128,074.92 to cover ideas ment charges; finished wares in 
Stock at total cost of $21,656,01. 


The financial operations Maks the ensuing year include: 
ine a of raw material $80,416.45; factory pay rolls 
: 125,793.90; factory expense, including wages not applied to cos 
i cpuntieas pot ,845;3 management expenses 58, » 100; interest paid 
on loans $1,200; income from investments &5, 004. 


The manufacturing operations during the same year compre- 
hended: raw materials issued on requisition for consumption 
279,820.34; wag ges, applied and sshd iach ion to manufacturing cost 
~130,250.40 and to factory expenses $5,959.59 included in the 
Sum stated in preceding paragraph. 


Finished goods transferred from factory to warerooms, at 
prime cost, covering materials 78,543.58 and labor $118, 333.75. 


The trading operations during the same year comprehend: cost 
of goods sold $351,949. 90; proceeds from goods sold $302,339.88. 


At the close of the year the partly completed soods included, 
in addition to prime cost, the further elements of value to cover 
factory and management expenses in the amounts respectively of 
$8,439.02 and A135, 678.66 and the factory Day roll for three days, 
amounting to $1,347.67 which has been applied and: distributed, 
though not due till the close of the current work. 


The basis of the appor Paneer of On Cost or Overhead Charges 
was as follows: Tachory expense 20% to mat erials and 80% to labor; 
management expenses 30% to materials and 70% to labor. 


The transactions of the previous year in round amounts were 
used in calculating the current year's apportionments, viz.: 
materials $75,000; labor $115, 000; factory expense $34,000; 
management expense $36,000. 


Open the general ledger accounts that control the cost ac— 
counts; show the Operation of each and the net profits resulting; 
also calculate the percentage to be added to each Dl or material 
and of labor to give the total cost. - 


Ref. 45-1 
164 


Oss .888 .OF MEIGORT re 








































s thay nattereqo .mreomde gniwtcstunsa 6 to eftood sxP 

ort te scottibaoo natveffot edt vote ,etmimoose toe0 to moveye 

:$5,168,cf£> moorsosts ai eisirsisa wet They fseet? env to Caner : 
oyeb & ,bteq ton tud Betudiztelb Sas betfaqs ffex Yeq yrocos 

.o}.583, 609 .fe00 satigq #4 yeboo bogudos tunes yiirsed et. £583 

cobtud yrotoet tevoo ot .TL.960,82 to owley sediusi sag =<1e 

nt ociey bedainit jeontado gmeneganam teveo of 82.270, e5% cals 
£0,829, £83 to tano fatfos se doote 


:shrfont te9ey Rakvene sft aniayb eaneiteteqo Istonsait edt 9 9 
elfor ysq yrotost ¢h.9f8,089 Lettetes ret to agestom 

teoo of beriqus tom sozew anibyloni ,eamoys yrovost (O8-te7T,. cole © 

bisq teetetai ;00L,802 seeneqxs Faemogsnsem (666,25) .SPnOOOS 

.$00,.@3 staoutesvai mort enooalt 2008 ,i¢ amsol m0 


—S1ymoo msey omss St yaliwh ancitsteqe satutostiaem set 
soisqorenxoo rot noigisiupes ao beusat efleinroetsa vst :bebrod 

teoo nankurtostuma: o¢ betudintelS fas bolfqgqs: casger 6.088 CV y 
edi at bebrrfoni: 2C.028,29 seene yee yaotest o¢ bas $2 .0ag,0824 

| | ,fastesreg gaibesery at Setste mye 


_te ,amooretor ot ytotost moti berretensit aboos bodelakt 
.a0.S88,8L52 saodel bas 8@.$0,8T> alstistsa sakasvoo ,te0o smitq 


co :bacdexqmoo te9y ouce edt grityd ancitsizsqo spinsi oaT 
.88.G5E,S0¢¢ blos aboog mozt ebessorq (0S. CBE, fea, Hioe shoes to 


bobuloat choop betefymoo. yl[tisq att xresy sdt to seolo Sav 7A 
sovoo of oxfsay to sfnom|els tedtust edt ,teoo smixag of moidibbe at 
to yfovitosdqest etaveas edi ci seaeneqxe taomezsaem Dae yrotost 
.aveb sordt rot Ifor yeq vrotest ed? bas 68.878 ,.cf) bas G0. 60), 8% 
betudicterh bee Betiqgs aesd sad doldw To. Thc ,.[2 oF naftavoas 
.ixow tmetivo ont to seofo edt Ifit sub tom dgwody 


senisd bsedxrsv0 to ta09 29 to ¢asstoit<cage edt to etesd ocT 
-todel ot 08 Eas sloizretem of POE ssmegxe yrotest :emotfot ss est 
etodel of OT bas slsicegam o¢ FOC esamogxs taouwegecem 


iv ,etceanmolsrogce essex taetivo sdt gaii¢sivoiso at boar 
1000, 30% seaeqxe txotest ,000.aff2 rodef ,000,2T? eleizretsm 
< .000 887 seneqxe tronegensa 


~o2 ts00 edt Lortaoo ted? stnyooce tentel Lereneg eat aeqd ; 

waai¢i(vaer efitoxry ten sect Bae doao to cotenxene tae wode jatavoo 

Iaitogen to [2 dose of bebbs ef of eqstnooneg od? etalwolso osls 
, | .teco Letot odt ovis of rodsl to bas 

/ aad 


i, e i 


exsw atmvoms bavor at wesy exotvery edt to snoitosansit 9aT 


° ome 
* .* 2 
ee 


% hal 7 


‘PROBLEM NO. 229. Bod 
(NiY. COiP\ A Ebsamination ) 


The cost books of Factory A, the product of which is charged 
to the main office of the X Y Z Company at factory cost, show 
the following facts as at January 1, 1910: | 


Cash (imprest fund) $500; raw materials $17,688.51; wages 
unpaid but distributed to cost $2,348.67; goods in process, at 
prime cost $62,258.61, plus $11,352.75 fer general expenses and 
29,007.50 for management charges; finished goods $45, 390.20. 


The invoices for purchases of raw materials for the year 
amounted to $78,375.65; wages pean $133,041.27; management 
charges &53, 695; factory expenses 436,967.08. The cash received 
for one year's rent of loft was 81° 300, and for sale of il 
months! power $330, the twelfth month being unpaid. 


The raw materials consumed during ee period amounted to 
$64,188.33; management charges CAgiripat Hae factory 
expenses distributed to costs amounted = $43,033. There was 
also a loss on machinery replacements of $107.50. 


The output for the year of finished product amounted to 
524,583.43, inc luding all costs, while the transfers to the 
in office were $338,297.90. 


At the close of the period December 31, 1910, there remained 
unpaid, and undistributed to goods in process, the regular factory 
pay roil for 4 days amounting | ie $8,857.93, and also 1500 hours of. 
operatives! overtime at the rate of 45 cents per hour, payable 
on a basis of 2-1/2 hours overtime as the equivalent of 3-1/2 
hours regular time. 


Raise all the ledger accounts affected and show final trial 
balance. 


Ref. 48-3 





(noitsatasxd AT. 











bepiedo ef intaiy to toubory ont i eee Be 
wore .tsoo yrot ant ts yasqmod & ¥ X edd 2 goitic 
a :O56I .f ytaumst ts a6 8 ae 


ieee! :£2.883,0E3 olsiietem wer (70083 {bavt taetqmt) das 

Vi de ,089907% mi 2003 ;YS.888,8¢ tao ot bodudtateih tud £ 
bas aceasqxe Lereasg tot GY. eae, ff eulq .£3.8e8 .80¢ = ; 
08 -003 ,283 aboog bedetast eegtsdo Sremegaces ‘rot 0 





















yom wSt to soesdomsy sot ‘esohownl edt th 
PRO S805 bis segen {25.2TE, ave o¢ odanaed 


zsey odd + "2 
80. Va0,acg soamoqxe tosont 3203, oe9 eau 
D 
a 


S 
JITOUNOBGENMEM 2 





get 
TS 
bovisoo:r ds a oft << 
ff to else ve® 

ares. oye 


re 
2 be te, 


es ,008,I¢ esr tiof to tae etrssy ono TOE 
nied ag trons detilowd odd OSES r]evrog meh te P 


















ot bana pe edt notiurh bemyemoo elstzeden wer oAT ui, 

Yrofoar ¢ £a¥ .cse bstudiztets segusdo tmemegenss 566. 882,303 | 
esw oTsad?  Ee.88 0.525 ot botnyome stsoo ot besudittelb sesnsqxs 
06 FOL8 to avusasoetges ysentdoea mo seot s oats 


ot DSetnsong toubory erin iatt io rssy oct rol tuqtyo sAT 4s 
eat o¢ aretensat ont sfiitdw ,steoo Lis grifirlont ,cb. 232,468 oll 
-O0€.T9S,8803 erew eottio aten 7 


beniemer siedé ,Ofef [8 tediesel botreq sf? to seofp edd oA i. ‘<a 

Ytovast rzeliset 3c3 eBSS00T9 wh gbocg ot besrdiné¢etbay bas ,bisqay 

. 10 Biv0d ooaTt vale bas ,€0.9¢8.82 oF satinuone onteter 10% {fox ysq > 

eldsyeq <iuod 187 etaso ch to otet odd fa Szevo 'sevitsireqo 
S\I48 to Fier aviupe edi @s smitzrevo sro ai f-S to atasd s £0 

| omits. teluget cued 


tt featt Woda bra Bes ve¥te adowoose rogbol sdt fle scale . 
-eoneled — 


. " a _ i 
; a8) . tor he 
‘ 4 “| wel ie? ee a 


-, ¥ 
- Ls ! « i eT] 
Pe " a 7 ” 





PROBLEM NO. 230. 227 
(N.Y. C.P.A. Examination) 


From the following figures of net sales, costs and 
expenses rrepare a statement accounting for the Skrinkage in 
profits in 1921 and showing in dollars “and cents what portion 
of such shrinkace is due to decreased sales and what portion 


is occasioned by the several variations in cost and expense 
items: 


te ae 1923 
Materiais--—----<+-.+.4- * 2307500.) tuoca sob. 
Direct labor----------- feo. 108,228.75 
Indirect labor---------- Gsioao. 85979. 
Factory expenses—------ tet ahs ros OS pe 
Trading exvenses------- Bo ,500. 30,947.50 
Office exrenses-—--~----- 10,500. Tj o5 0s 30 


WETCSALES-=-6 7 9390 7750; 465,500.00 


(N.Y. €.P.A. Examination) 


A fire in the office of a firm of traders partly destroyed 
the books of account which had been fully posted in anticipation 
of proving their correctness. The following ledger accounts were 
found to be legindi 


git gris. ¢ jy ture 9 rgd aaa Se ae OU 
Seer Cesuounte JOST)... .. bese. ewe se 330 
Cash discounts gained,............ eee Be 8 
BOLee 10 Ge «5 cu. as Nag 3g eae ate . 18 , 000 
Viele Le Ce Toot ee a es ee oe wee, 6 d 11,000 
Upon inquiry the bank balance was 
ascertained na a ie ce in 2 43,000 


Bills receivable had been dis- 
counted at the bank, a cata 
Cee ee nae oe ae hie se ms ‘ Log ue 

An inspection of the checks ‘paid 
by the bank shoved amount paid 

creditors, including 620, 000 


notes payable,....... po aa 5,000 © 





a ie 
te ‘ _ 


esa 08S. 0m 7 
(xottemtnex® .A.9.0- we 


bas atseo .eelse fom To aexugtl ontwol > 
mi oprivintric off tet sc ktaroces jrenstets 6 es 
noidioy tear etn0o bas etelZeb ot aubwode bas 2 
noidtoa tote bos eofse boagetoeb oF esrb ek Op 
gansqxe bas ¢soo at anotteliev, fsveves edd. 


. fa we is, 
i, a me . 
e ° i : F 
cser Laet 

























































¢ noc 

- ec& cas : ood ,OSk a Ld. tae ee Li. ae ; 
27.9858 ,.80i . .008.8F wae nw cannnnngodsl gooTid - pathy _ 

. Sve , z - cay ‘ 3 bof wom ame ZOCaL toszzbal ié . a aid . 

-CCO,35 .. -GOe Te a+ -+-==698Sjxe YrososT - PS 
62. TSE ,98 - 002,05 ~aw---suseiiegas gatbeiD 
O2. 385. ££ 002,0f . —an-+--<S96negxe 252770 : 

r ae | 
00.008 ,236  .0G¥,0C& —--SiIAS Tai 0 Pe a) 
=e ; ; an ) 
feS2 . ton 


LES .OW MEMORY 
(roitsniassd -A.T.8 -¥-1) 
boyoutseb yltise erebstt te mit 5 to enttho eff ai ott? A 
doliteqioitas ot bogeoy ylint noed bed doidt taycopa to eiood edt 
ere7 sinuotos toahs!l nunkwolfot sat - S8ONFO9TIOD ‘ekont 


vory to 
| :efdtzef tg pave’ 
009,ES¢ ie ee ses eegtS eSegdote? 


3 ea ee ce ’ - cook asmyooalrS detd 

beret Fete e ene e ees BO ateg etaroosib decd i, 

O00 -3L.- . oo aie ae no. 99 byes whe eer ery asfse 

060, £2 wecceve,+--g@hdevisost eifig _ 
‘ger senmsisd tmed ode ytivpat rot oh Oy ; 

O00. Sh | soekus over veve g @0 Of Donlstzsnas. ay 


~sib meod bad elfdevisost efile 
" P aed: wine edt ts ee 
00,2 wool s sis G Roe Seley eae 
~ Sisq ‘exoesio ed? to noktoozent ah 
bisa tevome Sewode ined eit yo 
906,082) pathutfoat .esoribers 
GO SE fe ee ene e renee +e gGhOSYR B6FOR. 





B20 


__A balance sheet prepared at the last closing of the books, 
which contained the following items, was produced by one of the 
partners: 


OTe s ee ROOK, OF meray $30,000 
ROGOUITO PEC VAULO, cee wb eects ne 423,000 
(fie hah Tie gs (tlc dui U9 8 2. alae og ee en 8,000 
Rea, WeUtaLeyn awe ALL. . payne A R= 50,000 
BOGeswce ces Wee iar ok ues al. BS 14,000 
BOOOUS a yan C yw. dite Ochs teletyl ‘ 10,000 
Ie gett: TE oth 223 ant tae a a ape ae ; 20,000 
ee ee, ORV LE gw a alas o inhale 5 ete . 12,000 
FAS eet as T prelee. simge | seed swly, o's Pip Pmteetioce « “£2,000 
Dek 1g i Ll OW AED) IIR 1 Oooh tO De : 84,000 


The firm stated that the real estate, loans receivable and 
mortgages payable remained as shown in the balance sheet. 
The inventory of goods in storage amounted to $15,000. 


With this information open a new set of books showing the 
position of the firm at the time of the fire. 


PROBLEM NO. 332. 
(NoYs C.P A. Examination) 


A woclen manufacturer operated his mill during a strike 
period extending from January 4, 1917 to June 8, 1917. The 
losses sustained py him during this period are to be compensated 
for by a Manufacturers Association. The parties agreed to the 
following: 


The miil has 80 looms but the percentage of loss is to 
be based on a standard of 6O looms, and only 75% cf the looms 
which were operated are to be considered, in the adjustment of 
the loss, as having been in operation. The remaining looms are 
the basis tor compensation. 


Fixed charges were $39,263 per annum. A further loss of | 
64,113.45 occurred by reason of excess charges paid on. loom labor 
and there was a loss of materials from theft and carelessness of 
strike breakers amounting to $500. 


The total productive loom hours accomplished were 435,064. - 
The maximum hours per loom were 1200. TThe normal production, at 
mill cost, would be $119,303.47. Five per cent on actual loss 
of production was aiso to be paid. 


Prepare a statement showing what the manufacturer is entitled 
to. 


Ref. 52-4 164 







































stood oft to snisofo tent odt ts Poems : 







eds to ano yd becuhotq ssw —_ aatvolt ‘3% oft 

| ‘a hbw: 

a: i : anes oh 

7 i Oot OSs @ oe 3)\ent & Mein Raw be) A ice eee ee “ a i, 

; 50.82)... Scams aa nee « CIGSV LOOSE BIMUTOS 

Bs ht SO0L0E ts beeaau sense gees sap een bl 

H00.a-L oe a een neeeewewnw te . eoideviscet | es . o: Bri’, 

O00,.0 ay > mb wot Ae ee “se 2 © woidsysy Bie €4 Bere We ie re 

) 900.06 o ose Ve oe b.4 ee 0 Oe se astot - alk ) 
fx} © eee sews evpvnon eee 0 & 2Ldsyss eozegizol : vy ae ri 


COO sas a ee ee eee ee ef <oc¢nernt 
090.28 4. i's wikia woe sie nd a eae ae ee 





bas ofdevtesex ensol Stetes iset oft #sdt betate ortt efT = 
.tooce soneisd edt ni avorde ee benismez oiceysq ap aki ah : 
-000,,6L¢ of. beftayous egetodo st eboog to yretnevat s | 


sdt aatworts eixicod to too wom £2 meyo agitexmroirti aidt adi i" 
: -ot22 oct to emit ed? ts. aris oxtt to mele eaeg 
saan « 9H 
+888 Lo umasoee 
(notteatmex® sA.d.0 .Y<i0) 


snitugrh £fim at G hetexzaqs remtosivaen asloor A 





axixgva s 
ont .TLe£ oo Sant 2 Fret  yrevast moet selinetze Bots 
Satsanoquoo od of or hobtea atid 3aizvuk ote yo beaicsena E9GeO. 
edit of Ssorae setizeg saT. -mitekocaa’ exoweoriunse! « yd rot 
| ih | | 3 igatvolios 
ot si csolt to. onetnsox seq ont fod rs O08 sed Lite sdT -_ 
sunel ade to Tat yfmo Bae ,emool 08.20 Sysbtste « so Sestd af © 
to tnemtetttbhs edt AE (bovebisnoe od of 328 betsisyo stem doide 
sis anool unintsiet off .moiteteqoe ai aged saived #6 soot = 
-doltseaeqaee tos atesd of 
. 39 esol tedtent 4 monde teq gac,esé ote> aovtsde bexit 
P sedsl mcel ac bEsc SINLEMS SE9oRe ae kOesST Fad berguooo @b.eff.b) 
t6 sacneeolezss bas Peds asi itejem to esol a assy stedd. 


2 og actitavoms eroizerd oxkate: 


-230,€ eter bedatinnosos sarod moot. _oritoubors fotos edt 
te «mo itoubore fcurcn saT? .COSE exer ae etyod mimbasa 9 
seol Lfeuses. ao tns0 r9q ovit _FhreOe gat? ed Siro a 
-bleq ed of cela ser ae 


(Scititae of rsitoriwman edt teste aici fiaetates 


a 


PROBLEM NO. 233. 2284 


(N.Y. C.P.A. Examination) 


John. Brown lost his stock of merchandise May aM 1921, 
through flood in ced Mississippi River. 


to the local Mutual Flood Insurance Society 
claiming a ioss of $5,886.35 on merchandise 


moe oT P 
ollowing data ascertain his merchandise in- 


Stock. From the 
ventory: 


Neti protite, May 1, 1927, $4,452.91; drawings $1,598; 
legal expenses €17. 50; interest debit 6313; advertising 834; 
commissions debit ®961.01; insurance $196. 23; sales $81,688.04; 
inventory December 1918, $1,568. 88; purchases $55,415.82; labor 
productive Sig, 4993. a teleph 10one £4056. 06; sundry factory ex- 
penses 3,201. 52; repairs $16; surplus May LASSI. 3 2 6540915. 


Ref. 52-5 
164 






.€ES .O wac507S 
{ no ttonimext AD wt 










reer .f yen osibnsdotea to joote. ‘eid 
tov fyuleotecll & 


oe ytoine® soxeivedat Boolt isutiil ‘Tevet. odd ot bs. 
satbasdioren mo 2¢-085.2¢ te seel B oat ete 
wit scibascoren eid mietreces ated gwen: edt a 


- 















+) 





<3e2 , I cuntwerb ,f¢.825, ag .isec | et yah ais 

. alg antetizevbs vELE: gideb toorstas oe ? ae ny 

; 130.886, [8¢ aglee (68.30f0 sonetuesi 19.252) “tide: emoL 

 godel ;95-2f5,d2% seeadoueg 48¢.8ec, rk vate | i 
“x9 YIctost yrdave (dO. aps” enoniqelad ats ef, Sic 

.£¢.848,32 ,f£S0f .1 yau woven Fea) a: pep eet 35e-L0 









Sof 


MUNICIPAL ACCOUNTING 
PROBLEM NO. 334. 
(N.Y. C.P.A. Examination) 


lage levies a tax for general purposes and through the 
icials collects the amounts and disburses the funds 


The Consummers' Electric Light & Power Company located in 
the village furnishes light and power for public and private 
purposes. 


State the particular class or division of accounting of which 
each of the foregoing cases is a type. 


Contrast the books and accounts kept by the village officials 
and the lighting corporation as to (a) purpose in keeping, (b) 
advantage in keeping, (c) facts sought to be shown. 


Rule a page (or folio) of each principal book of original 
entry and make at least two sample entries in each such book. 


164 


LA as 














ent Myyotds bite wwq Lexs. 
| BBawt edt Soazdaln Bae mm 


&i Boteool baci tevod - 
eeetes ae ois tO toroq 


7 





sizctot?to apse odt yd tqex eee tab 
Ac) symkqeed at saoqruq (s)-o¢ se cotieeces ogres yatt 


_eftfvoda od of taguos etosi (0) sBtiqesd ei couane 


‘Gece arer to tood feqticnizq doses to (ottox to) eS - &. eft ad 
stood dome dosa ai aeiza0 efqass nee te evan bas yitas | 





° 
5 





OD 


PROBLEM NO. 235. 32 
(N.Y. C.P.A. Examination) 


Nassau county undertakes two public improvements, viz. a 
road estimated to cost $50,000 and a sewer estimated to cost 
$40,000. 


The work is to be paid for out of proceeds of county bonds 
failing due at various dates and redeemable from assessments 
levied. against property presumably benefited, to the amount of 
the actual cost of the work and incidental charges when these 
are determined. 7 


a premium of 
of the two 
respectively 


Bonds to the above amounts are sold realizin 
i per cent which is added to the funds. The cost 
undertakings when completed is $50,000 and $40,50 
for which assessments are levied, 


o 


e) 


Assessments are collected as follows for roads $30,800, 
with interest of $1,310; for sewers $29, 100, with interest of 
$1,250. The interest in each case goes to the funds. 


Road bonds par value $20,000 and sewer bonds par value - 
$15,000 mature and are redeemed. 


Prepare a statement of the transactions from which the 
status of the county debt, as well as of the funds and assess- 
ments at the conciusion of the above transaction, could be 
ascertained. 


Ref. 51-5 















- 


"ae On aICORS 


(an ftantokes aie £5 ta) 


£ .Siv ,atmemevorqmi: oliduq owt oe 
teop ot botamites reveals bas 000 
























abaod ytnveo io ehssoorg te. oy vo ot BE 
aimoaensses moxt sidamsobet 78% 

to totome edt of fot i toned eidemmaaze Reet tentage be 
seed asidz aggusdo shade Tansee bas | fate end te te0e isytos oat 


to gurimerq s atistive: bloe ote sifcoms svods eae oF ‘ene caer 

ord sdt to teoo ed? .absast odd ot bebbs et dotir tms0 oq 
nievesnteas O62, 028 bus 006,06) et betefqmoo nei cuaiinsrobay 
' \betvel ats simemsesses dois saad 


O08 .08$ ebsor tot :arolflot as botosfloo ons adirontusded Tae Fe 
"<2 fsqrotai déiw ,00S,863 areves tot gOLE,IS to: serge siz 
vabavt odd of gocg s6s0 dose ni taszegat saT .088 


oulev asq abmod terse bas 000. rd eirtew req shacd Bsof — 
-bonesbei 91s bas eiutem 000,858 


sdt dotdw~ mozt cae heweamuea efi to tnemetsie s eats 
wo89968 Drs Berut oid to se Ifer as .sdeb awoo eft To eutate a 
_ od Blyoo smo ifoseneit evocs edt toe sate inane hy = ts atasa 
bonist19086 al 


@er@ + tof 


PUBLIC UTILITIES ACCOUNTING. oot 
PROBLEM NO. 236 


(NeYs CePeA. Examination) 


From the following trial balance of a small railway company, 
make up a condensed balance sheet, an income account and a pro- 
fit and loss account: 








Ott be. se O6 oe CORMOTs +6 6% fais 2 Pry Ra (ae Re . oaks 2SS000.00 

SA he ee ee OPPO . oy x oes so sin rece (hl wih ateieee oO ot 142,200.00 

Pepa aeRO Serer OPS. SCI) sce.» + «osieiewh tele ste 5,450.00 

ARR oe DOIN S tS 5 obit fy ida hic doh ay oP RUGIS% 1, d02,000.00 

Cost cf road and equipment,....... $2,659,252.32. 

REL Steep 6 hah UA te iniw eo) a sek ee 6 eo 8s 8 2,452.56 

Hahn VAL Gee o's 4 xe > « oaiele aleke phates « 20,621.86 

POCO Ss DSN A 1D Cgicwinis «00 a2 50s as ss 6,531.78 

ARCDL Sau CONOUCTON ST, <<< ebb soa 1,708.80 

individuals and companies,..es.eeee 6T,UETecs 

Foreign companies’ mileage,....... Ofc 

Foreign companies’ tickets,....... 196,36 

Usoet «Oss COPAriment,...... cugnecmes 771.54 

BLANK LEGRDPESS, COMPANY, «+ « + sie seis 4 916.36 

Agents' drafts on treasurer,...... 145.94 

Prepaid advances for cther lines,. Chalo 

BECK CHAPRCS gab eames sen ess in tei; a 18.56 

OVErcnarges GH APGLEDE sy eecccrsess : 19.84 

Gite .oace DSlSmice,.. ...- 4% oe 99.88 

Scuthwestern railway company,....e. 754.90 

Barnings, PASSENBEL,«scccresscaeee 8,155.84 

CS hr aii A ward ey Pe eee ae rea 11,386.78 

BaP AO 5 eMAt hy wee so pes ews eel « 1,546.96 

Earnings, CXPPESSzecsrecnsccsseses 5,494.52 . 

OpEFaLiIng EXPENSES, o osc esse Her saws 20s! tleiD 

Interline freight account accrued. 04 Ci 

Interline ticket acccunt accrued,. 3999.76 

PARC S sab dp ee Ce wine Midiiid's, ola sxe bois 050% 1,184.00 

SRCCTEST,- Cll DORIS ss a's = aa «ela eRe) 111,000.00 

PELCrGav An OVsCOun ts « «ssa 5 v0 «'s0'% 194.78 

itsurance paicd in advance, ...ss<- ica. Jo 

eee ea? GSN VANCE ogy 6 e060 ss oe Selous a 

Bee eae LOSS, 5 ee we «00 6 wa 8is © Fie nie 20,013.78 

Coupons due and unpaid,....... aes te 68 ,0028.00 
TOLA) sacs nas eeeemeer. $2,600,681.26 $2,820;,661.26 

Ref. 5-3. 


164 


‘ 








ae . fe 
Ss Lou TTMUOIOA earruatau oxaav3 a ae 
5 0@S JON MAIGORE 
(wo bYenEMaR, 2 8509 Yall se : 


| SCAEGUOO qawliet {sm 8° to oomatadl fsixd gatvotiey . 2 
peag, # bas tavoocs oaocnt me Baier: eouslad & ~ 








00,000. g2£ , [4 Te tee ry Behe ee loose: ; 

00.009 ,Sdi o* veer t eee et awe serene es ge UOTTSIIIG ixaoge a5 paced ~ f 

; O00. Oda, SG ov eae een eeees roses pq GlI98 Speen sHaote fad or ae ‘Ee ae 

00 000,850, . Pai.  s.9ie'd Sala nly of oer phe ee ee ogsgosom te: ? i ; 
54308 822 45% seeeee guNemgiupse Sre 580% to teod 


BGS a. mITTCTeTT Tritt re ee a 
66.[25,.08 eee ee eee “ 
BY .L52 29 crceereeroccacecegSldBysy esmVosoA “" 


08,807 ,f vaseesescece gS IOTONDNOD bas beled ' : ‘a 
BS .TRL.7S i a ee epei meer H0 ws ie erence oes) | 
Sia VS i a ++ 4+e 00 @ BRED. ol ‘a9. MATOS Biers 
Gf. SCL | sov-saeghtOdol? *eoeineanoo agietot 4 
. $6. £7" uae tt eeeeee ress gdiromiimegeb «eT 62.0 
) 3¢.3fe sesessvecens @ ENRGUOS seotgxe aaele 
@.daf Aa aie oeseesgtotvenstt no etisth ‘esmoga ~ 
> »,e0nifL isdto 101 eeoausyvbs Bi ve 
ec.8f : or eeeeseeee e+: cunmn og BORTRNS 
= : b6.°0£ eoeescenceosqgtMDkOtn pag doasre Sere 
BE .e2-- ersevesesess+-e90neiad epsal ign 189" 
oe, 257. | osev eg Yaagmoo yewliat AS FROWUTGOS_ 
£5.201.8 ots ccecseveces eg T9QMOZesg .eaninrad 
BY .885 L£1 ene e ees oewce eee SORLON? ,endinred 
6© dis, crest eseescoeerosee ghia gegriniss 
BO POD .E Ee ae Cor eeerseess see eg BBOIGKEs -sRcintsd 
. OL. f£T7,0S ee eee ecco ness go gS 92NSGKS salisregod 
| SB -Soyttooe samesos Sogtextt onkitesal 
ay .cee + Sot209 Jnusges toxvots samad nie | | 
OO .P61L, f Ctr te anes ecewrecesewsneese eg 7 
OO e000, ere: 6 eter wecceme sense @ BOE nie 4 2 
BT FL: ot sess Ct 56 ame PTUS OD i6 bas 
Be .ESf ver sewee  SOASVDS af Sieg 
02 .EgS,8 tees ee es eae e DOF svir ; ; 
BY ..C£0,08 90's saiblees +aeeeuea Geek Dee tito 3 4 
00.600. 82 can aves Peed eg enter Daa Saar . 


98.{85,053,S2  3$..169,088.8% 1 t+ was Ce aia 
RS Sareea cere cemeeeeeree ae 7 : F ae 


















a | 


sar 


PROBLEM NO, 257. 


228 


(N.Y. C.P.A, Examination) 


From the following trial balance taken after closing the 
general ledger of a railway company June 30, 1910, and frem the 
notations fcund below, prepare a general balance sheet that will 
meet the requirements of the Interstate Commerce Commission: 


Cash deposited at interest $100,000 
Cash deposited not at in- 


ROVER Ge mien s wae sees ss 55,000 
| ovate nlc riz 1 9h) eye ee 5,000 
th Fo ekie holen casks bolt perry See een 10, 000 
Agents' and conductors 

be py lel oe as Re eae 50,000 
SYaviic mand, car service 

DO SANGEH les mn dese calle e tS). Srey OOU 
Other acc'ts receivable,.. 22,000 
RUPE OCIIGIL S galels ss. 2.0 =. rele. PaO LIOO 
TMSUPSNCS TU peice wes ese oo Sage 81 ® 
Deposits to insure per- 

formance cf ccntracts,.. 50,000 


Road and equipment,....(3)15,000, 000 
Other real estate,.«.-.(4) 1,000,000 


Materials and supplies,... 325,000 
Accrued interest and 

Poot ete aesiiievare uence 200,800 
Discount cn bonded indebt- 

STi S@ sah) Pee ee ar, ee a ee . 52, 000 
Equipment trust certifi- 

ee in ite oe emia Gen, 65 , 000 


Equipment trust certifi- 

CACES BIB SUeCC, wa weve ee Lge »V00 
General mcrtgage bonds un- 

PSSUCT, oe wwe we ss rg bs 8 8 E oF 
Capital stcck unissued, 


°e¢0 0 8 


SPNON ois od wee sa ee afalel dt g 
claims in precess of col- 

RD BLE ciyiat «> a pels ers 6-22 eso 20 0G 
Cagh and securities in re- 

demption fund,....+.+.- » 600, 000 





S22,403 , 800 


(1) Advanced to general and special agents, officers 


employees, for expenses. 


(2) Stocks of steamship and transportation lines not 


Loans payable,......$400,000 

Traffic and car 
service balances,. 

Audited vouchers 
MUDALO DG uwats sarees) 277 OOOO 


171,400 


Wages unpaid,....... 85,000 
Interest & Rents 

BOE PNG. Gata eis va) Ody Ou 
Other acec'ts payabdle 79,800 
TAXES BCCYUCH, cs00.5 «0,000 


Capital stcck authcr 
auized preferrcd,...3000,000 
Capital stock author- 

ized, common,.....%000,000 
General mortgage 

bonds authorized, .5000,000 
Equipment trust cer- 

tificates authcr- 

Re ct te Missle ois sa tL gO) 
Reserve for deprecia- 

depreciation road 

and equipment,....4000,000 
Reserve for general 

mortgage bonds,... 600,000 
Reserve for claims 


and injuries,..... 60,000 
Reserve for contin- 
PONCL SS, «wee sees ss 40,000 


Prorit and loss 


FUC OI UGs aes +e cde he dee youu 


622,403, 800 
ses Prenat Habeas 


‘ a 
ance 


in the 


system: pledged to secure loans payable $650,000; unpledged 


$300,000. 
164 


Sasi TES on wsad093 

| (noitsatmaxd hed 9 telly 

aed aodecl> codte nated oonsisd Istat | 
OHS cot? Bae ,CLOL 08 ent YRBGMOD yavitet 2 


fliw gec3 isos.% o>asied Catenes & mipmap os 
‘aoiesinwd sonsamod otstetedat odd To eaneareaias 22? ect Jesm 


000 ,00h).......ofdayeq eased. 


teo bas SittstT 
OOS, Ivf .,2sonsied sofvroe 


2etsrfosov bagibrra - 


00,288 ete e tem ees - -biaqrus 


Bee CG > sae eeu +, Disqmy zegaW 


sine S seetotal 
é: Per eel peesesens +g DONTOOR 


eveee sg DSUI00m aoxet 
sogus Hoote Latiosd 
O0C ,OO0E..., 5ortetegs besive 
| toitse Meese {stigsd 

000 0007. «see qtoams  bosi 
sacniiom IsteneD 

000 000s. ,besiterjus ebrod 
-%S59 Stews Ineouqinps 

“loritue gotsoitst 

OOO IOUS 5.66 Sieben ssn gbOee 
“Si99%qG95 Yo?t ovreaeeh 

| Heer suidsiosirceb 

900 .OOSS ..«setaomgigpe bas: 

Listens: tt sviToe sn 

000,008 +. 8hmod sasaicen 
emisal> rand evisesn 

JOO,06 sees sp 28ftut ak Bas 
enitans wt svapech 

errerveseeo sn gee ton 
eeoL Sus tEo1g 

003.5 OS + #8 +s 


000,05 





GOS eat COe oes Soe 


— exeoitto ,etinese Istoege Saas. terends od Beenie aries | 


oct at gon conte solssstogeneyt Sne qitemsete to e093, i ae 
bagbelgas 000,028 sidaysg saao. erase of . iq :otey 


AN 
D08,.c° efdsyaq es 9on! toxido. 
cx a 


000,86 sce eseassee eer egeeSHog — 






‘aang pio 


000 001g teotetai ts see 2 
. eak te toa Podieogas, 3 
900,22 eek ee ee eae wee wenes 


ee Fe i 

a °S 4 

000,8L (S).....0-4. ent saitsow q 

O00, 0L:- seca steep SEeNe Be eee ; 

| erotoubroo Sns 'storepa 

000 ,0& weer eevsionee cage oOneisd 

eoivice 199 base olftiarT £ 

600 , Svs sceessesnersesegcoommiad Be 

GCO,SS-  ..,osldsvisoet eF's08 senso 4 

OG0,08€ (S).s.s...-cesetnomieseni 4 


900,29. ina 5 ae ee sonstvent 


, tS5q owent of esteogsd 
G00,,0& ‘  etoneenee to soanerrot —. y 
000 ,OCOZL£(E).eee,Snomeivpe bre Beek = | ' 
000, COOL ()).....,.9¢ade0 Iso1 Teds0 f 


(060, S8¢ ++ eee otiqque Sas elsitsisi 


| ie 5ne seoistnl Soutook 
068 ,08Lf er teestpoeces ces elLBSaet 
“sJo5nt Sebaod no tnvose td 


 witigiss teats Jasmaiopg . 

0CO, 3a (3) .. + hea wen eeee Fy, bin 
eitisziss seuss: srromg isd 

O00" Ges, ts *2te2@ © 03 ooves tray 2389 
ems 2Snod sseottom [s1eged 
000 WB ds sadeegs te ee ae 
«Meier Brus xoode iatigqad | ‘ 
. 





O00, 900 cfs sh tea th heen 

| ‘efgo to e2990%q 7: emisio 
000..05 EE ee et ee I hee ; 
Ls Ot BE B6ETincose bas of 
900,000: Ohi hie ie akan 










-neensqxne iol , 


SSL 


Rag 


| (3) Prior to June 30, 1967: road $9,000,000; equipment 
$3,000,000. Subsequent to June 30, 1907: road $1,800,000; 
equipment $800,000; general expenditures $400,000. 

(4) Not used in operaticn of the road. 

(5) Deposited with trustee pending delivery to the railway 
of that portion of the equipment for which the proceeds cf 
these certificates are to pay. 

(6) Created by charges to operating expenses. 


Ref. 48-1. 
164 


"phen sake :000,009, e2 baot oer. 
2060 .008, es beot STOCL ,Oo emul. of 
.000 0082 2 east therogxe Is 
pact. -ef3 Yo molten 
ot yaovifeb aniiaed gatentt i 
oid dofsw tot bet 


53 ssguedo 


ae 





MISCELLANZOUS PROBLEMS. 250 
PROBLEM NO. 238 


(From Examination Given by the American Institute cf 
Accountants. ) 


A machine costing $81.00 is estimated to have a life 
of four years, with a residual valve of $16.00. Prepare a 
statement showing the annual charge for depreciation according 
to each of the following methods: 


(a) Straight line 
(b) Constant percentage cf diminishing value. 
(c) Annuity method. 


(For convenience in arithmetical calculation assume the 
rate cf interest to be 10%). 


Discuss the significance cf each of the methods. 


PROBLEM NO. 239 
(Nev. CaP. A. Examination) 


Prepare a ruling for a consignment stock ledger, to 
provide for the following: (a) entry of consignment invoice 
inward, containing three distinct lots cf goods, (b) resume 
of account sales, showing gross proceeds, usual charges, and 
net proceeds, (c) disposition of gcods to various prushasers, 
stating terms, quantities, and values sold, (d) subsequent 
return of gocds, brokerages, cartages, allowances and discounts, 
breakages, ete. for value and quantity as applied tc each sale, 
(e) date and folic columns referring tc cther bouks from which 
each entry is made. Make sample cntries. 


Ref. 2-5. 
164 












to ojudtiseal nsobten ett yds : sn iris: J - td 
2 (ebaasavooeh bee iis iz 
‘etil a sven of Sotamises ot 00.45 Bud anh: 
2 o%ageri .00.af¢ to auisv icaeeee ft iw 


amibtosos noiselosigo® tot epuado Launas srit | a orie 
rebodtem gatwolfot ond 


omit dgtende e. 
ouley secbse toto Lo opedasoreq tnegencd (d) ; hare) 
 ehodteom Wthunna (9) : 




















ae. om 





ari 2euees notialsoflso feotvonritias art eonelnernos POT} is 
- (S0L od o¢ teoTstnt to otat 


seboriton edt to riozo to soneoftingte ods ‘eeuoz ld 


25S .OM “SLIGO TT 
(no kd amas ods Le Tad o¥ Ht) 


ot .tephel #0088 gromnytanzs £ 10% antiva s- ee - 
ootfovel tnemrgtedos to yttas (2} :antwolfot edit a0 aaivenie a 
emreot (d) .e5o0R Yo atol soniteiS sends palate bee. eDtawn1t 
hae ,2episro [eve ,ebessot 22 gaiworig .sefse tnyooos Pest . 
-etecsnentg exoltav oF 2bhoog to moltieoqeth (9) a 
Sxevpeedue (6) 4Bfoe eauLsv Po e29isijosup 
eatavooe tS Bra eoomewalis <SOgetis9 ,eogetesomd Me mp9 to-m 
2olse doso od Ssilaga 28 yiitceup bne ovkev wt .ogs eens 
iordw mort exvcd wefdo ot snitrs'ter emmloo- otLot Bas eteb (6) 
| seutigns — ‘eel pba et “aia Aoee 






PROBLEM NO. 240. 231 
(N.¥. ©C.P.A. Examination) 


On January 1 the Fairview Real Estate association was in- 
corporated, the capital subscribed and paid in being $30,000, 
divided intc 50 shares, The association purchased improved 
property for speculative purposes, paying cash $30,000 and 
giving a first mortgage for $60,000 at 6%. 


The association crganizes and intorporates on the same day 
the Fairview club, with 30 proprietary members (being the 
stockholders of the real estate asscciation) and 30 asscciate 
members. whe have no proprietary interest, but enjoy all 
privileges without incurring any of the liabilities. The 
annual dues are $100 a year, paid by all in advance. | 


ime association leases’ to the club the property aforesaid, 
the consideraticn, in lieu of rent, being the payment by the 
Cluo Cf a1, %sume Tor taxes, betterments, interest, fixtures, 
furniture, ete, 


The proprietary members are assessed #300 each, and by a 
subsequent rescluticn cf the association are to receive credit 
therefor, with interest at 6%. Five members fail to pay the 
assessment. 


The asscciation having executed a contract for the sale 
of the property for $110,000, the club disbands at the end of 
tue year. 


The club expenditures for the year were as follows: taxes 
$1,800; interest cn mortgage $3,600; repairs $1,000; improve- 
ments $3,000; furniture and fixtures $2,000; general expenses 
$500; help (sundry employees) $1,600. 


There were house charges against the members, $500, which 
were subsequently collected; and there were payable. bock debts 
of $4,00. A second assessment of $100, called for tc pay off 
the club debts, was paid by the proprietary members of the 
association. 


Frame jcurnal entries, raise and close acccunts on the 
association and the club bocks, and prepare balance sheet and 
revenue acccunt for each. 


Ker. 2-6. 


a: sobtantaaxs « , 


bie 2a alan cousins: etased ‘feon. a 4 
000,088 gnisd ai Bieq peers! Sat mn fos 
hevorgnt feesrowsa nokisiooges ont 
bas G00 088 esd 28 ga.08 Lhe PeSe aise 



















—s Sites ods no 2 steToqIooNE baa 28: taen19. so iet ea a 
oft naisd) erodmem yrsdsiagerg Of tin aaa we. st =. 
otaiooses OF bas (moldaiosees steias Leer sat To et 
ifs yojas stud ,teeredal Yietebqoug om oF. 
ent secktifidett eft to yas pater ane Sarath rae ‘ve 
.9onavhs mi ifs yd Stag .t827 8 ‘bone SMB 296 





ebisestoir v fteqotg ant duLo ont oF: eozsol noidsiooces oat a) 
eit yd seooveq oct gaiod ,taet to well nt ynotstetsbiemoo ody = 
2a TKED .Jeorstnt ,odnamriotied geoxet 16% ewe Lis to defo 

: 2OF5 olla LIT , 


& ~d Boe .doss OCE2 ideas) ota etedmen yietebacozg ent 

tibeto aviesot oF eas noisgsisoses act to moftuloess trouperdus — 
eid yaq of List erodmem evly oe te dsotetnl dthv ,sotetedd 

; Toe ear. - 


elas sit tot foetta02 e boduosxo rivad aottetoosee oat Pes 
to Sue ez ta ebusde tS dsfo edt .f Si Sar reeey rit to. 


ek) a 


waned tewolfot ec s1ow 1 sao add 501 sowsibnogis Sule edt es i 
“Ovorgat 2000. £% etiaqs% ;003,6§ On 1) JeotoseE ettaee 
sosmogxs iatensa + es sewisht. cp gpl eet 29005 

008. £2 (seyolane ribs 


slo Letsr geal eetodstom oHit tentsas exptede Se uot | 

2ide5 wood <elidayed sion execs Bee shotaeftos je 

270 Yaa o¢ so} Saffss .OOL$ to Scamen cece Dii320g - 
sas To etadmer yrstotiqozg ont tek Sieg aay e 














edgy mo eTno60R seols Sie oe iB4 
fev tosde soneled ined baat ¢ 


PROBLEM NO. 241. 253 
(N.Y. C.P.A. Examination) 


On February 1, 1894, William S. Brown & Co. shippec from 
Worchester,Mass., by the N.Y., N.H. & H.R.R., 500 lbs. of merchan- 
Oise co cry Hoomith, Jacksonville, Fla., rowted by. the N.Y., .. 
N.H. & H. to New York, by the Ocean steamship company to Savannah, 
anc by the Savannah, Fla. & West. to Jacksonville, the Eee BX 
charges to be collectec of consignee. 


On February 10, William S. Brown oe CO... S€iiu Go a. fe Jones, 
the commercial agent of the Ocean steamship company, located in 
Boston, Mass., a check for $37.80 with the request that he change 
billing to prepay the freight on their shipment of February 1, 
to Jacksonville, Fla. Mr.Jones accepted the $37.80, and issued 
a prepaid bill of lading to cover the amount, wiring the New York 
agent of the Ocean steamship company to correct billing accord 
ingly. 


In the meantime , however, the goocs had been receivec from the 
N.Y., N.H. & H., anc forwarded by the steamship company collect, 
and it was impossible to make the correction, 


William S. Brown & Co. forwarded the prepaid bill of Ging: 


which they received from Mr. Jones, to the consignee, who insist- 
ed on the vrotection of the same. 


Explain fully how this transaction should be handled, giving 
in detail the manner in which all the corrections in the various 
accounts should be made, tracing the transaction eh a the 
delivering agent, the claim cepartment, the auditor's office as 
the forwarcing agent, and also covering the collection of th 
money by the proper company from the commercial agent aig cota 


Ref. o~-6. 





























ces: rane £28 0% muIaonT 
‘qofttsntmexd “pAeded Ye! Rev. 


a mort Ssogtde .00 3 mrema 12 malin Sess” 
a «(sro rst: to ~ecl ood us efielt 3 ehet eeu ods é 
= qe¥eH 90s Yo Sesvot «Ske ~elfivacesost .ttine.A 
 ~fecneve2 of yusqmoes qiemsete ms990 ers yt ,d10Y west oF . 
grigtor? oft ,ollLivacedost oF .teoW 3 .8f% wisnmevec odd vO 

| ,comgienoc to SetoefLoo od 08.1 


.eonot .T .F oF Jase .0) & mvove .2 msiitrw ,Of yrsus 
ai betsool ,.yasamoo gidemaste msea0 edt to grege Let 
sunsdo of tet teaupet aft ditw 08.%EG sot wool esee 
f yraoxded to dasaqide siett mo Srgfesxt edt ysqotq_ 


peuce! Has .08.TSZ sig batqeoos eonot..t .sl% ,eit OF. oo 


iaoY wo edt aataiw .tacvess eft teveo of gaboat to ffid bkscog & 
ehioosre anrific goetios of Yaaqmos qidensede msso0 sift ‘to sasge 


ts L 


= 
~*~ 


» 
' 
. 


q ae : 
> 


ads mott Sevieoet mood Bad 25005 sit ~revewod ,eatiasem edt at 
~toolloo yrsanoo qidemeete edt Ye hebaswtot Ons .-H 3 Hel ee teh : 
% ; .roksoovion ocd oxfam o¢ efdiseoqmi saw $i See 
; i -: aa: Pai (ia oe 4 
escthsil to ILid Hblaqei¢ eds pebtrewrot .00 3 awotd .f mori liw a. : 
ateient ondw ,soantenoo eff oF ,.eemoL . tt moti seviscoes veds doidw © 
Sat | -emse eft ie moitsesoi eit ao he - = rs 
onivig ,belbasd ed biuorce moktosensts efvs wot yifwt atsigxd 
scotteyv of? ot ecottoeties sit (fs doidw ni qonnam one {tetehb at 

. ets davowist meitosensit eft gafosts ,958m od | a 
fers aottio e'totioye oft .teemtaeqes misio ocd witegs gatvevilem 
aft to motsosifoo ert gattevos oais bas ,.insas gabsiswiot sf 
noteos te teas Letotermos edt moti yrsquco wegot? eis yd yenom | 


oud Let. 
; ; an 


2 c . ') -See _ 
A ; to 


Sat 





PROBLEM NO. 242. B09 
(N,Y. C.P.A. Examination) 


The New York steamship company issued income debentures for 
$500,000, the ceed of trust providing that an amount equal to 5% 
of the total issue be set aside out of the earnings of the company 

echevyear "ror the retirement of the bonds. 


December 31, 1900, the assets or the company amounted to 
$1,200,000, the capital stock to $500,000, other liabilities 
4700, 000, profits for the year $70,000. 


The company received $30,000 from the government for trans- 
portation of troovs Curing time of war, which amount did not 
appear on the books as an asset, the cost of transporting the 
troops having been charged to profit and lossarcount in prior 
years. 


Explain by journal entries (a) how the recemption fund for 
the retirement of the income debentures should be treated, (bd) 
how the income of $350,000 for transvortation should be treated 
in orcer to show its availability for cistribution among the 
cebenture holcers, without interfering with a correct showing 
of the earnings of the company. 


Ref. 11=4 « 


















= _t0% eemtetrecsh smoont Seveet ergo | | > troY 

: @ od Lerpe cnvoms ws ¢ett gntotvowg tert | ptr % ons 

if = eit To Santis edit to two o5tes tee Sd St agC 
. +e hod sit 20 ‘sagmonk set et at 


: oie ot bedatons Yrsqaioo ent ‘lo eseeen ostt 00er ae 
| * 2 petdtftdeil vrerdto 000, 0088 of foote LIstiqso. ectd 5 OP 008 | 
ae 2090,0 OFF ts8y erlt tot Blea 080,09 


: -enatt sol sromaveves; oft mort 000,088 bovteoot wescci0o ont 
| gon 5th tayoms doftw ,.1ww To omit antiyd ecoott lo mottestoq 
ait antitocensyt to Seoo od .oseee ms Sh exood edt mo sseqqs 
Hcgaie. nt SeMISSNs 2e0L ioe th tor oF spe heros wood Esai ; 


 ¢o3 Bawt moitameder eft wor (s) ebiaien aan: e aielga a 
(dd) .betsont od Sluorfe eonstnedeh emoont oft te F oad 
hotsert of SLyoce aotisduocensts Tot 000,08% to emoonk ont wok 
ais erome mottudtssei® tot wtilidstiave asf wore ot aweht0o ak 


-_ gaiwore toerI99 r] tid iw gnixettetat guodtiw ,.219' oe 
-yneqmoo eid ‘Io sgsinise ont to 





PROBLEM NO. 245. 304 
(N.Y. C-P.A. Examination) 


A certain firm decides to transfer its business to a core 
poration and wishes to have its annual net earning capacity based 
on the results of the three years ending December 31, 1901. The 
firm prepares a statement from its books as set forth below and 
calls in a certified public accountant to verify it. On examina- 
tion the accountant finds the statement correct according to the 
books, but in his opinion the amount charged for cepreciation is 
insufficient by $2,000 a year. 


PROFIT AND LOSS ACCOUNT FOR THREE YEARS 








DY, 18°99 1900 1901 

Salaries and commission,....-.,-...2+ $45,327 $ 47,395 $ 51,294 
Wages (other than manufacturing),..-. 5 a ede, 6,824 7,241 
PRCEe a ee a Mt Mist ee win sivic aia a win sae we Dee rata 10,000 10, Q00 11500 
pee 3 Egy apg he gig tee a Neer ee PD Wes reno, 2,500 2,450 
Pes CT ee Feo wo n'e a 0rd a enh ont ele vad elas 1,200 1,500 1,575 
Travelers, <ssecsses aimete Miele ord eee eae 24,296 29,825 S1,ceT 
Per Nien (RF RAPEY POS... ct. cc eee cee es 10,000 10,000 10,000 
Pe ere Gr Si ge FORTE SS ce oe mlae wee ces 1,026 1,074 1,523 
Bei irs ha Re Et a irr i a Os i00 3,276 3,427 
Pra Oeee SEO GORE Yo. e < ne ee ree es 3,274 3,542 3, 764 
Expenses, home office,..ecsecvece OP Peo OVRO 21250 21 /006~ 927,325 
PROrsee  Orhico OFC TCGS oe cw ole weno 1,073 oes 1,304 
BeAr iasta, "konecraly i. aver eer ety sr. oe les 9,463 9,721 10,426 
interest on partners!’ accounts,.....<. 5 oct 5,451 el gate 
ae eer OR at. sue es reels bt rye is 5,601 rad os. 5,948 
WERGNS Aho Horses. i. oi. Seer es oh ee 5,270 5,400 5,591 
PAGCINg US Hier ee Ds oes ales SS. PoJaee eas 3,194 O,eto 3,542 
Sree ite eer ere PES Va Sek see eee Oh es bles Lee? 1,246 W274 
Denatione  evous. POS, Bae Oe | aes Pe ae os. 570 592 613 
BOUTUCCCS gas Soke Sa Foe eis be x Obie selne Operk oyoLo 5,470 
HEY OOP Ces eae ek PRS ee oe ne ee ve CObR 60) 53,741 62,748 

Tatar we. F207 Dass. CHSr eet . $216,417 $228,616 $248,015 

Cr. 

Cross sprorrts Petal yccoscc. oF sea. se $216,417 $288,616 $248,015 





Adjust the profit and loss account so as to show the net 
earning capacity for each of the three years, and draft a suitable 
certificate to accompany the propectus or statement rendered by 
the firm. 


Ref. 12-6, 


164 


bes. 





«c3S OM ageont 
. (aoisenimaxd whe ToD vat) 





te 


amos s oF eeenteud efi xotenett oF ‘sew ee 3 ee 


boesd ttiosas: anicies ten Leunns ett evad of” 


eft .f0CL . If redmesed antins: ereey sstdt ond | oo pS isie 
bee woisd So<o% $92 28 blood ett mort tnemetese # 80% vic paps \ 
=anionre o .ti vitixev o¢ Snetnsooss otiduq betti¢ies goat effso. > 


eid OF gat d10098 FoSTIOS drsmetste ont efit agra 


ai okt skoox: 2> tot hestadeo Inuome eft aolytqo ett 





PRASY ERT 0% THUODA 2201 ‘QWa TITORS 

































# Hors. 







-TS8y & 000, Se YS “Soetontts 


yh Ooel . evel . Pa | 4 
a, fé 4 aes. T> = Tao. ab e vc ccvescees ee fo tee bamoo eee’ seneeeee } 

recy 588.6. - styY,2 wenn g (abtudos tues matt tercite) ype 
ooe ff 000,0L 900. “Or e cdonreds Cage eanebenes aete eee : ' . 
eas. o02.S 007. : eubgveea G4e bes 440 SRO Cte r ee erre ASL 
avs. f 602, £ 003,£  cavencewacbes betbes seen sen eeewaontE 
Tas, fé 238,29 aes,.a8 Neckedticsn tities teenie 7 
O00.0f O00LCL OO0;OL = ss ncevecece-pesenqeee teiee e'tend1eT- 
#S2 sto... aso.f cag ued aun ceo CoRR OO - mottsioorgesd © “— 
WSs. ove .é Odf,.& bu deewdcecdeccesgbtala@: (nOltetseme ‘vg 
SST E Shd,6 BVs,é ve wccseccceveeUronoitetve bae gatiaiti 
BRE.fS BOOMS SLS,C8  cacccsevse+eees SOiTIo Smor <eoeneqxa i= 
208 .f {Sf .f evo. t eeebuwake's se qQh@Gleem Honetd ,eoeneqxa. - 
ass Of rsv..e f53,.e eenvcccnccesscvcedeqgl Steneg ,29eneqei 
ave fS2.2 ¥ae.a eeeese,2dquoo0s ‘eteagieg so tgestotmE = = 
Bee oc esy.¢ £03,2 wee ccdensseeedvacheoupeG@acees Saw ae 
{22,2 o04,é OVS. 2 —cececcsensosueesecsqeeesom mom enosat 
S5c 4 évs,.& DbOL.S ne kebudg bovalegewe coke eee ea eumeeee 
SVS .£ aac .f Toe, f wisclecdde cagaucns eeeeueneekeeenaens “en 
ofa See ova cela idles scbn8t comes saseeeeneneee ae 
ova.é 2$3,2 ITS < ves Bly cad vewe@na aaah eee eee bsa on 
BDdt.$5 fay .c2- £06 SE aevee* wrt eededneetecersnsee gt LION om 

a0, 832 so Eid.318¢ sass ods «acces 





. ~ ee 
283 3L3.88S$ Tia, 9iS8 vas ub ese nl eee gamer 


ae 






-$ftomq e207) 


efdetinue s tisth bas .etnoy- seit af? To dose sol ysitoaqes 


jean ont. worle o¢ es oe tavooos eect pees tfiowW ort seu_bA 
grinise 
yc bowebro? inomotede to eusosqotq ent a eee 99. 







PROBLEM NO. 244 B05 
(N.Y. C.P.A. Examination) 
The following statement comprise the trial balances of a 


business at the beginning and the enc of a fiscal period, together 
with the volume of: the transactions during said period: 


Trial Balance Interim Trial Balance 
January l, Transactions. December 3l, 
) Se Pt, ies eka Bs $24,696 $24,696 $ 1,360 
BS Wereosndiss,¢..ss 5,050 17,665 26,874 ; $ 4,159 
PP CO Sia ee ale 6 4-65 3,110 Zo, LOO! eee 4,016 
Bera R USS faiee ses ae 2,800 505 3,005 
& Crecitors,< ssc. $ 1,575 18,922 19,410 2,063 
6 Loan (Int. pd. 
Bt 4 : 500 1,000 1,500 
7 C8DLials eo. tse cs ss 10,000 10,000 
‘8 Int.anc ciscount, 693 560 3095 
MA HOSE Sa wine ee sien ue 900 900 
LO SRSUPENCS was « 2's Ss 50 50 
Sa OR eY OS ok + «de kts 1,820 1,820 
Pepe UeL SANG . . oo ne S00 900 
ee OY CATE le ols c wk ols 1,705 1,705 
Ae CR OTIS Oi «his » oe bie 1,953 1,533 
15 Drawing, pro- 
DPPLCCGR. ws uc Ste 2,000 © ,000 


$12,075 $12,075 $96,569 $96,569 $17,722 $17,722 


a The sales book shows sales posted to debtors to the amount 
of $25,135. 

b The journal -shows allowances to cebtors for returns of mdse, 
sales $1,015 and claims on creditors for returns of mdse. 
purchases $230, also application of cebtor's balance to 
settle creditor's account in the amount of $9,500, both 
accounts being in the name of the same correspondent. 

e The lecger showsthat the nominal accounts entitled Rent, 
Insurance and Office Salaries contain only cash charges, 
while the nominal accounts entitled Advertising, Cartage, 
and Expense show cash charges in the total amounts of 
$100, 4500, anc. $773 respectively, all other charges there- 
in being by invoice Guly posted to creditors!’ accounts. 

ad The Merchancise account shows cash charges of $610 and cash 
credits of $1,509 for cash purchasesand cash sales re- 
pectively. | 

e The invoice books shows invoices posted to crecitors! ace 
counts to the amount of $19,410. . 


From the foregoing statement of facts write the several ace 


counts Cisplayec in the trial belance, showing the elements composing 


each account stated according to the titles of the accounts comple- 
mentary thereto, 


Ref. 19-3. 


164 


“ it re — 










(sottenkmext »AeT.9 o¥el) ee - 


# Io seonsind Laisa ond, Sa ee ee 
“sotidegot ~Fotroq Isoeit * Fo Sag ont Sar going reas. 
-S0ryoc. oise patiS saoftonsaeat 62g Fo emmrfov 
goncisd £sitt misstar -eonele@ [sft 6 
WLS tocacoed _pnottaneast? * <fL YUsNest 
08d. f % BCS ASS S989 arr.f ¢ 
eéL,.3 3 Sy8,a8 200,72 ©  OEO,e 
afo,d 85,22 sbigea OL .e 
| 202 ,é 202 i e¥ 
—eo.f O1>,.0L $8@,8£ 8Ye,1 @ 


Sake FO: pbs .0m Malas 


| | | gotguns Ef oe 

Shh . apf A : : eee Pe Roe as 3 <r 
5 aren 7. aa S PP ee S A : 

600,68 900,$ = meer rr 


008 | . 
20%. f "BORE eee e eee ee geek 


Ce 


ee 





sav ,tee sor, 018 @52,203 08a,80% ATO. S18 BTO, S18 


¢nuomn sit ot erotdeS ot Seteog eoine eworle food setse ea? 2 ve ie. 
* te 
seem to emtutoy tot c10sde> oF esonnwol{s igo Peary lacing Pg o 
och to BagEiot Tol etotiseto go emtafo one €£0.19 eos — 
ot sonefad e'toideS to noigssiiqas coef. OFse esesdoisg 
fitod (008,02 to dnyoue offs af tnyocos strost ao sivsee 
" ,tnshaocest1co. smee ett Yo emaa.s¢s at anted esauooen | > 
ino Sefsicrs efavones isminon e°s tattewode T9R591 oct 2 
eeoansto dese ylao nissxco eatin{st esti bas soasiresl 
~surguad ,uerteitrewsa Softisas efauqooe fanimoa 22% tw | al 
ian DER). . a 


are vere 
é : 
ae! 






58 .OOS@ ee 
~etnioogs *erotise1s.0F > sgog yinh sofovat yo gated ak ; | 
flees Sma 0138 Yo eegrsto meso swore tanoooe Saf hrierlotoM tr 5: Uae 





eos "gotisers ot hoteod eeobovak evwore &: 
3 | "OFS <OL8 to taxon 







4 
) 


 =98 [steve ott eticw esos? to tnemmtate a aoe ial 
griteoqroo etnomefe ont antwor's. ,soneisd iste Ofs GS sata aed bana ps 
@eiqmos etmuooos srt to seistd ont of gatewooes hetase Iarrooe Pareicaiasy) 


PROBLEM NO. 345. 


B06 


(N.Y. C.P.A. Examination) 


The books of Robert West, real estate agent, for the year 1906, disclose the following 
opening and closing balances and intervening volume of transactions: 


Er nn nein tem endinen benim siemmennenamanenn nen cenntatetestn a antenna assess ae 


Titles of accounts Balances Dec. 30, 1905 Transactions in 1906 Balances Dec. 31, 1906 


ee Se er Se Neer A een Teen nT C nc cunih nnanmmmememrmmncemnesasienanetmemmsiemirtonuniinmniineaierememintine artim hiner titt 











tlre Ve La me.s £2 760,08 #137,797.638 $135,893.70 $11,664.00 
‘shat heh a: (er eS ee 1,060.00 34,656 .00 34,788.00 928.00 
Rents accrued,.... $ 1,060.00 34,788.00 34,656.00 $ 928,00 
OWENS cb ae Sik 0 Bed 8,500.00 34,610.00 34,788.00 8,678,00 
Pee US saat cen 260.00 Dy vae OO 100,934.00 102,070.00 104.00 6, 209,00 
Trade creditors,.. 444,00 4,841.40 5,007.40 610.00 
POGGs 604 oe 0 6 es Oe 135.00 126.00 
Commissions,...-..-.« 3,118.92 5,1318>9¢ 
DISCOUNTS, essences . 180.00 180.00 
EXPONGOS, . fs 6 hs «ws 1,000.00 1,000.00 
Personal drawings, 2,000.00 2,000.00 
Office furniture,. 500.00 .. 500,00 
Oat Cale «ass ee wal 1,647.08 1,647.08 


$11,580.08 $11,580.08 $350,627.02 $350,627.02 $16,196.00 $16,196.90 


Cee cee 





An analysis of the books afforded further information as follows: 
Tenants were allowed $71 for repairs made by them, which sum was applied on account of 


rent and charged to owners. ; 
Owners were charged for commissions on collections $869.70, trade creditors bills for 


repairs $3,566 and insurance $52. 
Clients were charged, insurance $668, coal $906, fees §120, commissions on sales $1,004. 


164 





~ «= 





mers oss ook 
= ons . we” rece S7g0" | yee 
* eorewe on soyreagrous Beea" 30" $n 


23 tor ‘eboqee megs ph pow” aprop em : 
Seen — ich sacral oo. “ROY 


*PEO"OE tO" eros 3200 "EBC 















720700 





| Gowmyocyousy +++ + oa | “S'7769S es 
= | aes eae eee Siete | ; I3Se*00 be; 
a ihoqe oneq7ys one’: | TIF'00 OF BET “40 eb ta 
mo. oyyewpa®* sts ess seo’00 «8 589°00 )§=—- JOO SaF "00 708" OSO"OO - TOF OO. 
mee) BeUBLE ss tt ls | 8" 200°00 3f°€7T0° 00 O9 ABE OQ 7. = ee 
Beupge socrmog’**** & T*o@0"00 Qe" ASE ‘00° 2% CRE"00 | 
. Lewsuega* teen eterna T’oeo "00 = o¢* ere 00 g¢* dB 00 | ASB "OO 
MPEG? > Aether sss SB Sao ge STQ\'*sas'eS $T22°892"so SIT eet’ oo : ae 











Mme Bityee ot sccomen peyvuces pso° 30° 7902 yxovegostoue Tu Ta0e@ —«- BaTsWeee pec’ 33° T50e 


~~ 











te eh ae RN NA RED Mme cate et mete 








> epemaoam mmm mcm meas aati gaa iat ae 


ebexyve aug oyoorut peyauces sug rueonacuTve AoTMNE ot gnvUavoryoue: hoe 
gape pooxe of yopere mers? Lesy eegsge seus’ TOL FYE hess. Fe0e" {ies 0ek ae 4 OTT 





_ Chk Ot btv? EXeMywsg7 ON) is 
: 4 as | | bBOBTER WO" See" oi a 


a 


Bo? 


Trade creditors presented bills for office supplies $50, 
insurance written 9576, coal $815.40; they were allowed $180 for 
discount on settlements made. 


Commission 
coal orders wer 
Suppiies Accoun 


on sales, collections, insurance written, and 
closed into the general commission account, and 
vas transferred to Expense. 


cr Oa 


i The cash transactions were as follows: Receipts - tenants, 
$34,717, clients $102,070, commission on sales $1,010.62 Payments - 
omners 930,051.30, clients $98,231, trade creditors $4,661.40, 
personal drawings $2,000, Expense $950. 


Prepare an ARTICULATION STATEMENT, showing in each account 
the several elements of debit and credit and giving each element 
the title of the Articulating account where in the contra credit 
or charge appears. 

Ref. slel 
164 



















= 


TSE ig ei 


088 estLaque coltte 10% afiid Detase 
“S02 O8f$ Hewolls exer nea 703.8683 L805 


ant onubieutiind este i: 
femoo Lerenag off OFnE beeofs fos 
-sanugxa oF os detxckensit ears 
risceH  vtevwoLliet es ore? enottosenss? . 
i sef-e ao soleaimmog «OVO B0L2 ainolt gbe 
sale Oe é sgodkbst9 ebhert yl&S 80 etmetio ,0b.580,08¢ ezenv 
| .089% seneqet .000,86 cats ich er) 8 


£0 ak yet? wode " MSNATATE NOITAIVOTTAL ae exe * 
Tr ® acivig bas tibeas fas tidab Te scueanad reves 
tibSero srtiros add mi srede tnvoosn anigelyolita ede to pane 
i ited lll ae 


4D 
hy &+ 
Oc 
cr 
t 
+59 7 





PROBLEM NO. 246. 398 
(N.Y. C.P.A. Examination) 


On July 9, 1907, Smash, Slump & Company, bankers, buy from the 
Atlantic Ocean Bridge Company its first 5% 50-year gold bonds 
dated july 1, 1907, interest payable semi-annually, amounting to 
$10,000,006 at 90% and interest, with a bonus of 50% in common 
stock of the Atlantic Ocean Bridge Company. 

Gn the same date the bankers form a syndicate for one year to 
take the bonds at 92-1/2% and interest with the common stock as a 
bonus, They make no charge for expenses. The syndicate is formed 
as roilows: 


Jones & Company take $1,750,000 as a participation 
Smith Brothers é 6,000,000 
Reader & Company ‘ 1,250,000 . 
Smash,Slump & Company ” 1,000,000 . 


On the same date the bankers pay the Atlantic Ocean Bridge 
Company the total amount cve it for the $10,000,000 of bonds, and 
carry the syndicate, the members of which make no payments to the 
bankers. 

On February 1, 1908, $6,000,000 of bonds are sold on the stock 
exchange at an average price of 95% less.1/8% commission. On April 
1,1908, $1,000,000 of bones are sold on the stock exchange at an 
average price of 94% less 1/8% commission. 

{ 
Prepare statements, as follows, showing the banker's and 


participants’ accounts as they should appear on the banters! books 
at the close of the syndicate: 


a Statement showing the bankers! account for the purchase of 


the securities including transfers to syndicate account 
anc vrorit thereon, 


b Statement of each of the syndicate menber's accounts as they 
should appear on the books of the banvers, July 9,1908. 


c¢ Statements showing te transactions anc orofit and loss on the 
the bankers! own participation account, assuming that the 
bonds are sélling at 92-1/2%. 


In making up these statements, no account neec be taken of the 
coupons paic by the Atlantic Ocean bridge Company, nor of any in- 
terest charges by the bankers to the participants! accounts or to 
its own participation account, as it may be assumed that the cash 
received for the coupons by the bankers! will be sufficient to re- 
imburse them for their advances to July 9, 1908. 


Ref, e4~1, 

































st ) 248 Of waraor? 
(aottentnexg hed a C 


add motlt god .et9x aod eYaraqntod 3% qmrle feomd 
Bhnod bfcu iseyoO02 RE Fertt esti ya 9B Di 
of gaitmvoms ,yifsvans-inee sideyeq teovatad x: Z » Bets 
mommoo at xX ie to ecnod sa dtiw ,teoretal bars) noe +8 000,000,013 
.yasqaod enbind asesd otonsish om to foots a 

ot IWwsey ono 10% otsothave sg mot eteinsd add steb omse ony no 
8 ef Yoote nommoo edt dtiw teeretat Saez RS\{-Se ts ebaed oct Q at 
Semrot et a¢selBaye stiT .agenmeqgxe te? ee: om 92!.sm ‘yen? wesley a 
: ; ec Ot es ; 


aoltaqisftiss s es 900 oat ond | yaeqmod ¥ eonot 


600 000.8  precgord dtm? 
Eat 000,028,f ‘s yYosomod 3 1zebhsen 


. 000,090 .£ 8 qaagmod % om cig 


eg5it& aseo% sitmaefltAa orld yeq etotnasd sit ets emse oft m0 
bee ,ehood io 090,000,0L8 ext tol si oerd Sageme {stot ect Yusqmed 
eid of etasmysgq on ovam dotsw to evedesm sdt 2oteo Love | ott uae ed 
Noote oft mo bloe sis ehnod Ye 000 000.88 ,B00L .f precast 0 Ma 
{[IttqA m9 .moteeiommo RB\L ceot REC 20 Sotiq exstsvs ms +8 egretoxs 
ge $8 enradoxe “sote ect mo BLoe site e5nod Zo 900,000 Se 4 come 
, .moteeimmos RS\L ewof be 16 sohtq ogs19v8 


| hrs atasrined oft amtwore ,ewolfot es .esmemesste eTeqo1t — 
SE 9OS feio'asd ef? no bates as S{yorle yet es edness ‘etnaqisagted 
. aneok here ets to seolLo sat. ta y 


to eestowdg sft «6% tawooos ‘ etatined ort aniwede tromeseté 8 
duvooss sdsoibave of eisienstt gat®cufoni eettinusse orit a 
-,moereds $iiotq ons 


tea ze etasesse e' vedrom osaskhvtee. edt to Aoss to tramstet? Cc 
802f,© ylut .etevaed oft to efood ent mo wescgs SLuorde 


eft mo 2eol oma tittotc Sas enoitesenstt o”F gniwore efnamesstZ 2° oe ) 
eit tect antrwees (tnuccos sottagiotsisg mwo Setsined oft ae 
RS L<Se ts gttiice ers 25n0d | 


of? 10 moves? of 5S9drt poe on _esnomategte seeds qu gaidem a ne Ei. 
“al yas Yo ‘ton , wABQTIOD eabine aeeo0 otsnalta add Pa Steg . 
oc 19 etrsaoce ‘etfnsqtottisc eft of etsansd eft yd eepteds tee a 
fess oct tect Sommees ed yeu tt es ,inwocos norteqioisi1sg wea 4 | 

“ei of tretoltine sd ({tw "agextnsd sft ed enoquoo odd to? I 
-600L ec vist of a, heniead Pa . 


PROBLEM NO, 247. B49 
(N.¥. C.P.A. Examination) 


A certified public accountant is engaged by a manufacturer of 
lumber to cevise and install a system of accounts that will make 
provision for proper monthly balance sheets and for statements 
of income and profit and loss.. Among the many things to be pro- 
viced ror the certified public accountant is confronted with a 
Situation that grows out of the custom to sell on terms of 60 
days, and at prices f. o. b., to destination, without prepayment 
on the carrier's charges. The following items illustrate con- 
ditions disclosed during the first three months in which the 
system is in operation, viz.: 


Shipment invoiced in January at $192; carrier's charges 
estimated at $47; carrier's receipted freight bill remitted by 
vendee in March for $50. 


Shipment invoiced- in January at $240; carrier's charges es- 
timated at $65; carrier's receipted freight bill remitted by 
vendee in March for $60, 


Show whet provision should have been made by the certified 
public accountant for recording these items and how he should 
have converted them into journal entries during the course of 
his installation of the system. In other words, disregarding any 
classification of the sales, illustrate proper records in 
columnar form for the recording of a large number of these trans- 
actions, enter therein the items given above, total the colums 
for the respective months and make journal entries to carry such 


totals to ledger accounts necessary and proper for accomplishing 
the cesired end. , 


Ref. 2666 


164 


a ee ee ae oe ae 


. 






















ees “TOS 40M MAIEO: 
is | (aokssetnans ht.0 0 
‘to TSutoR Toren 8 ya Seas 
-.otiem Iliw stadt etavocos mos 
) edrenctate tot bas etoode ors iad 
-O%q sd oF ennin¢s yrsm env ghomA ye 
8 Adin he JeprtaoS et sradruoooe | aE 

.. Qa To smtos mo {foe oF moteuo 
taeaysasag Svosttiw .a9tdeakdees, 6 


-sciod otettesift emest aatwo. ftet 3 
ent dotde a ‘edit rom aouty 


rogiado e toting ,SOLre te 
vd Settime: ILtd segtort betcl 


-c9 gontado eerie. ones tr oe rn Wes oeke gromgtele ae 
vd hottines Lftd IJdatort botqteoey e*asiting ;c0G ta betamts 


_ 08% rot dort at 6 


beoltisres act? uw ebem need int: ‘SLuons note by ot tarlw wor 
Sluode ed worl bus emosi seed gakbieset yor tassa: 

_ Yo setsoo sft seiwh estatae Biches otai meds Sesxevaoone 

yar anthtspeielh qebrow vedso af ‘ent Yo 4 e ailissenti 
. mi ehtoset tecotg sSacteulre” -20lne eat to sottsol fs 
«saett scadt to 1sdewn ests{ s to gnibtosey siz 202 mol tanmiog 
enmyfioco oft [stot ,evods mevis emec¢t sid aletedt mtn err! OR 

dove ¥ttso ot ee8atas Len wwol slam bas enfvaom evizts at ‘: ese 
anttieifgnosos tO1 teqotq bia era ‘etao998 sop bel ot a 
: oS sorte ot ~~ 










iy 


PROBLEM NO. e248, B40 
(N.Y. C.P.A. Examination) 
Acting through an agent and trustee, a syndicate acquires the 
following assets of two corporations as valued by appraisement 


and examination: 


B. Z. CO. Re de CO. 


STAR a deg ci aie e cue AS s scenes weeeeee $1,500,000 $1,000,000 
BM LAs Cos cu oon weds eo ah case ere 700,000 800 , 000 
Peete SC ee ing Cull i tag. . pe cos end ae ea 100,000 150,000 
Mill structures and SOU A DMI wg o aiele ime bie aye 200 , O00 250 , 000 
ee Tp an weer onal 0 ess bse 20,000 50,000 
LBeat ee ce It i ioe Tae ee elec ‘ahaa 100,000 200 , 000 
a ee ee er a ee Rel cB gitix we 230,000 520 , 000 
OO i ert Le PS TEL a a wo ulin ohio enn 40,000 50,000 


EEE 9 SoA alte a RTA i AU Me RAT ED ne ea 110,000 220 , 000 
$5,000,000 $3,000,000 


This syndicate organizes “Iumber Company,” and sells thereto 
all of the above property and accounts, excepting the timber 
lancs. The syncicate also makes a stumpage contract with the 
company, conveying the right at stipulated prices per M feet to 
remove from such lands all of the milling timber. The syndicate 
agrees to receive as consideration $1,500,000 of Lumber Company's 
preferred stock and $3,000,000 of its common stock. 


The syndicate also organizes "Land Company," and sells thereto 
the timber lancs and the stumpage contract made with Lumber Com- 
pany, and agrees to receive as consideration $1,500,000 of Land 
Company's first mortgage bonds, and $1,400,000 of its capital 
stock. 


In organizing these companies the snydicate paid into the 
treasury of Lumber Compeny $500,000 in cash for a like amount of 
its common stock and into the treasury of Land Company $100,000 
in cash for a like amount of its capital stock. 


Prepare a balance sheet of each company, giving effect to 
the organization transactions and to the purchases made by each 
from the syndicate. 

Ref. 27-6, 


164 


oie 2 2. fa tee Sad en 
oes | Sh — ¢ uacORe 





: ce (noi senbmend eAT.D 6M) | 
ons eetivpor o¢ssitarye 8 ,edterts Sor tnegs i oe 






sritten 
tremeatetccs we boulae ea emolsaxocte9 ows ini: 


| —: Ss 


aoe * 


ee i oe ee we nt Wis a Pe 
4 © 050, I 6.8. OOF. £ Pee. ne . 
B00 098 500 007 ccucdueucegucctusedecccues 06 qian 


905,0ef O00 ,00£ | subdipbee devs esegQd2acno SAiGg0k Ome meee 
600 028 ; S00 . 00$ ** sececs vengguramuiupe des ssaysouite iis 
000,05 606,98 wecda succeed 45 balkweg ile Geen aisiqetah 
Coo. 50s = 000 , oof Or re rr ee ee ee 

000. 082 000. oes rerrascgcr te seses tS tse tls eee 
000 ,.0¢ | 600,05 Rf eaecweeccsccecgGlUsvioget 88708 Sa8 £2186 
000,038 a 000 ,Off } vehanes = +s Atri * srromod esd 


00, 000.28 909 ,.000,.¢ 


otgetert effse Sas “ yasqmod. redmal" eesincato ogeothnye: eter 
_-tedmi? oft aatiqesxe ,etnauooss San yrrsqetg svocs sit to fis 
ott dttw dosvines egeqructe s eevar oels ednoibave off -e5ast 


ot goal M r9q pee Sotatugqtte ta trdgie ont arkyevnioo .YSGAIOd 


etaolbnye off .tadmist-aniffim eat to ifm ebual Move mow] svompt 


et ys ened nacieatel to 000, i@ nottstebienes ex evisoot oF BoD Tse . 


-i90%e sommon est To 000, 000,83 Sak “Moose Serre tosg 


ofessdt efioe Sas * swereqmod bral” eoslneato Offa sisothare ect 


"tod. tedmd fitiw ebsa tosiutnoes egesqustes srt bas eoriel xodmtt odd 
_Sael- to 000,008 ie goiterehisaos es evtesoss of seotss oes eee 


-faetteso est to 090,,00%. .L@ Sas a ee yeu? e' yrraqmod 


eXoote 


“we 


ont oint Sieq stsokivas en? eoinscaoo sredd e/a h lian at 


to gavoma ettf s 102 feso mt 000 .008¢ yrscned tedmel To yiverotd 


000 OOL8 yreomo? Saat to rieaetd ‘git otat bra doote comms esf 
_ efoote Lsticqso eti to dnvoma evif s tot dens nt 


. of sosite aaivts yasamos dose lo teats eonsied 8 StoI7eTI 
son? vd ofer esesioivg eds of Sms aaottonensts ootange oad BO 
ae sable pi 


ers 08 5 


sagt 


leecec grivettot 









PROBLEM NO. 349 241 
(NVY. O.P.A. Examination) 


The Homes Realty Company was organized January 1, 1906, to 
own and sell suburban lots, and is operated by a manager under 
an agreement of which the following is a digest: 


The company is to furnish and maintain offices at New York 
and at the site of the Company's property in the suburbs of 
Philadelphia, and also to pay salaries of clerks and salesmen. 
The manager is to receive 3% commission on the sales. 


The property is to be reappraised at the beginning of each 
year, by adding to the account 4% on the book figure of the 
property unsold at the beginning of the preceding year, and by 
adding the amount of any losses which may have occurred in the 
preceding year, such additions for losses to be canceled in sub- 
sequent years if they are made up by profits. The figures so 
added shall be prorated over the remaining lots for sale, and the 
pyres is bound not to sell any property at less than the book 

igure. 


The books have been kept for two years without adjusting 
and closing entries and the accounts show the following figures 
at December 31, 1907: 


Property account (original purchases of 1,000 lots of 


POU PU OS Pergrcek cs oareeecdacteesd bdewnwies haeake a $400,000.00 
Gewe as “SUNGky es oe Perce cde Cede ee ee PSPs ee eee eS 400 , 000.00 
BOW SOL Ol FOS SRSA G EE EL EE PCR OREM CD ONE aH 3,085.00 
Puisadeiphia office expense, «cscs eedads Seeterverrees 5,178.32 
be TL Be ELA ot) Pewee fat a eee aa ee 17,500.00 
Sg PM LOGe DOL gee had SET SRR TEASE CEG OC SPEC EH 8 111,425.00 
Deposits on account of sales not yet closed,,...... P 315.00 
Mortgage held on property SO1d,..ccceesseeeerecwsces 38,000.00 
eh gs Mee ye ee EP ee eee eee ee ree ee ee eee 49,096.43 
Creditors! accounts (for office supplies),.......... 643.75 
Interest on mortgages received, access eccsccssseececs 576.00 


There is also an amount of $125.00 interest due and not re- 
ceived, and $235.00 accrued interest on mortgages at Dec. 31, 1907. 
These figures for expenses and sales appear up to Dec. 31, 

1906: 


New York office expense,........-+-- ae a ae a aire 1,435.00 
Philadelphia office expense, ..- 6. cere eecresecancervces 3,647.83 
BU MMEIeGEOl, GALESMCH PO ee le sw cc e canna te sere eeans 8,500.00 
Sales, 60 lots for, seer. seereeesee iia wie yt Pr ae ee . 39,000.00 


Prepare a detailed exhibit of operations, also palance. sheet 
as at the beginning of the third year, with exhibit of the pro- 
perty account. 


Ref. 39-1 164 


rhe COG, cit AE TRORe 
(sottentasa’ Ay @ Oo te) 
ot ,aOGF .I vraiment feos targto ew yneamd. ytised gon0H oat 
soheees 19% rrr evo betsrego el bas ,etol nedugdie Lfoe bas wo 
:feenib s el animoifos sd? fo kde to taenecTgs a8 


BtoY woll ts escitio nhetittse base dais? ot at yanqnos ent 


to eduuiys sid mt ytreqong e*yacquod edd 26 off8 eat 5 Bae 
-Gouesies bac eXiefo to eettsles yeq of cele Bas fteasnee edt 


-a9fas oft mo molsetmmos Pe. oviooet of ak TeanGee, 


sono te griannined edt tz bosiazgqest od ot st ytregory aaT 


ef$ to exegkt dood oft ao OB fmroces of? oF gaibbe yd. tS8y 
yd bee «sey paibeserg ad? Io natanmteod sit ts bloeny ytreqorgd 


edt ai Sorryooe eved Yea eoidw geaso yas to torrome edt anitbds 
-dus ai bofeonse ed o& esseacl ‘02 enoivébbe dowe ,tsey 3a eTy 
Oe couugit oqT .etitery yd ay obanm esa yout 1 atsey taenpee 
oat Sue ,olse sot esol getnlemet efd seve betszoty od Llede Bbebbs 
xzood oat neat esol té ‘Pater yas Liege of 70m forrod si rssenem 


-oregtt 


gliveutbe tyortiw etesy Ow? tot $qox noed oven eXood exT 
a it gat twollo® edt wore atrmrotoe ods bee esirins enteolo bas 
:Poer ete sodmeneT te 






05-09 Ube One be bb we tate Cees hb a wes Ser ever eenuase eee ouley Levps 
00.000,003 in. SR ice eee niese she bs ; cavienna oe ne Ted baed 
00+¢680.€ on Ee eS S < nie rene seb evar vee 8GRSGXS SOLTTIO PxrO¥ wot 
Be. OsinG ws ekki veeceetrescons gQ@GMGGR9 OOLtIto sidalchsaliay 
00,096 ,fi- are hos Oe pees ee as >rsveveeoess SOiteice e'aompolsa 
OO+eSs £££ “hc ose Say ire Rie eee wcb es ececeeg SOR GSO VES setae 
00.cfs. disse be ebeeneD tex ton selses to tavescce mo atisoged 
00.060, 8& 5s sila ee ee s+eceerssgbfos ytrsqoerq so bled exsntioM 
é2,. 220, 3. we see iw & © br cc eb nee sees hachbaeis sb be Cems Hee ee wee eee 
eT. ERS ben aaeecee gh esilgque aottte 10%) etawooos ‘ator t. 


es a > es © & as sree @P we eee eo es & .bevieser eegearzon re teor9eta 2 


an78t toa bas evb teorstat 00.26f3 to tmvems me cels et stent 
-TO2L ft .c98 to esgestiem ae feexesai Beuzoss OC.2eSe fas boviso 
ele .000 of q iseqqe esise bns seanedxs «ok court seeat 


7 :006L 
00.63,£ i ne ere eel conc dcvcnsenveseeeg@OHedxe S0kt tS ta0¥ wet! 
S6.%83.2 Simin san wg SEE teeececcees-.SaMegxe soltto sidglebsliat 
OS.) | kas s bance ne ster reravcenceesen eq iioaee@ige to asizelsd 


00.000, 6S Cte tn tetera st ewesenetasenaseseuen g TOE atoll 63 - .99f68 ae 


teods eoneled osle .eaottereqo to. tididus. Seltsieh s: oxeqort 


~orq edt to tididxe deir tA brid? edz to “ieee | 
puroo°8 YsTeq 


wee | Soo | 008 «test 


2 
re a) P i> 
ye Rn _ _ eee ae - 









PROBLEM NO. 350. 2428 
N.Y. C.P.A. Examination) 
The following balances are taken from the books of the 


Roberts Be ee Co. of New York City, on the 3lst of 
December 1210; 


Beveovery of: finished codes flan wy] )ytestetasieyidies + << 0 $ 3,684.57 
Peren lorry) Clr ran materinkewivan. Lp calsnaiaie, Deu Dee $353592-.70 
Purchases of raw materials,......... iMesh, Sasleiwes 62,519.85 
PELL OGs < wees a ein eisai a hte ee. & ae eS ae eee rarer ee 2a B17 , 387.42 
Tie, Sy Hee R ees tate Dulas oes os gO wate oe 109,317.88 
SRGUs Va aerca ln otel Giete 4k Ck wl a0 a Ree ere ate ease Wado cm) ine ate eae 19,500.00 
Discounts received. ere gee lates Es ae me aaa PR aoe eR 375.60 
Sane ee TO SEE EEE El gansta oes nhl wan ww alan 'n eee elle 186.36 
Fe EE ATR Te gs wa ew ed be Wis és tin a eins a's a's 8 5h 8 nm 8,710.64 
Light and heat for office, .... sates tet ele ida aos a olen ata 168 .00 
ee Ek a a a te ay oe eae ee 1,090.00 
ee Uae are ae Tie oe eaeicg Seatatnta eat ats Perea nla ath a nt na ae en 8,017.00 
Factory expense, ee ee ee ata ae ee Gta d oes aie eo 3,270.00 
eR Oe ier icles sae ROY ols wR A oe lke n wp Owe Os 5,289.00 
BO Cee OO OR eee et oa es PS RG ok Re 1,050.00 
General insurance,..... My ae DOH A Rae a oR a ae eee Ley 750.00 
Te SEE ok Enc rie ee ae Gear eae a 13,350.00 
OU 1 eh cttaly sieligte triiate wiaistwinrs Lo ee Cts See Ce Mee ne ee 3,600.00 
POMEL OTIDy dwn s da 9\4 0.0 & «wie AA BOR Sa eA a a 7,643.00 
87 Se ATS Ps 2). a gen eee (YS BARE Pree Ee eR Oo 9,700.00 
Balesren’s salaries,.....s. Dale aivk die on alent ee ie aw 4. yd . 8,930.00 
BECO T es TOM LOBNO Ls seas es os Oe. ene tte en eins & irate se 440.00 
RE ees ae a ae ale wn eWeek UN < Oe ak os se ps wwe oso 228,000.00 
VLSCOUNL LORS oils ekistealcs ae GOS wen nyse ale ih ake 2a. , ~ 130.00 
Notes receivable,..... Baio Shoad, idives eee wine Fes ce lec hict anaes 130,000.00 
MOGGM SeGetVACLG, CLEGOUNTEK, «case see es tees sv minens -. 8,000.00 
BOUGE DRVADIE, «<seceseusves Grea ca a a sles a erate a wae «ee 19,500.00 
ES he ee a eee : 101,026, 00 
AGGOunte Teyadle, «<<e<.ss 05 eas he ae fag oe aie eee Ae 30,020.00 
OFS i 6e FULTGILULE , s «wa o0 6s Fer yt a= eee Peep esis are eo 1,100.00 
Bales ie yt oo Ee 9 os 00 6 4a owe a Oe cer eee eee ness 1,950.00 
RPC YE (Terns Rian wi we a lela levies. e 0 W $a ale os es 1,825.00 
SEAS OS Pere ast og k Ges bik eae vale a eo be es © ew Ge 8 26, 467.00 
OS Ee, ee ee ee ee 276.00 
ete EC) ca wee e as wae tas se won ewes EE oe ie ae are 200,000.00 
Reserve for depreciations,....... eer eM ee has 3,206.98 
Reserve for bad debts, ..-esecsess PE HA aio eee 5,737 -00 
Freight and cartage inward,.......--cssessseaee naeeer 727% «O00 
EO a ES or ea ie sa 3,750.00 
Horses, wagons and harnesses,......- St tiewensesewess , 8, 500,00 
Postage and ExXpresSage, -.ccvsesacess ER ad ace wie 8, « 1,350.00 
superintendence, -.-sreesses Re a Ec 3,500.00 
gow cg’ a ie wed nok Sow bse win ee bie Ona 'e e's ae 350 .00 
Ren dt Olen 's ne aisle So.e 6, ¢ 0 wi siartes “ge A) 2 10,000.00 


We. $30,e 

OF. S0e.11 
c$.¢ Pic .&S 
st Yee. Tis 
88.Vic Sol 


a.e£ 


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06.00%. 
OO.CEe.B 


act gp OE 
00,050, 


das 
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06.028 


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oceesee oameqze LexensD 
sa. 50, 00081008. | 
eae e e SOE IUERL 


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aseouscese,fa0l Samooslg 
svccee - Olcavisoet aot 


,betmroceth ,sideviessz ees 


ce an hs eve adaw g CACSTES cereal : 
seer oscegoldeticost serpents = 


seyevessecse gOhCRYSI GIAO 
ase seen en oad ae Beles 


woos. gaQ@mtxi? bas sgt A 
saebtendaseeca neg hie a9 Sand 





(26s tanks ashe h gees ai desd 


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sveewees see qgunteleeinmel 
o+<ccee yO Sltciog s9ftz0 ; 

--+ 86faeiee mere rae 


tke + wees cnwe eg Glee bears SS 
Vis hee eae Wen eae OOS: fastgqs) — 7. 
ovoe Shokssltoszash 10%. ewxeeesh 
oewa ses g@tCob bad <e2. gist 


aT 
af 
v 











































Stationery and printing, 


ei A ie ig RS A pels: 2S" aR eng es aoe 1,080.00 
i ee a BL ee tigka ae, Be oe Ee ee eee 8,630.00 
Surplus 8 haa Replies re oa aay Sel ty coe oo G8 o> hy, “Feng 63,753.00 


a Prepare from the above a trial balance arranged in 
Systematic order, so as to facilitate. the preparation 

of financial or business statements. 

Draft journal entries for closing the books. 

Certify your.results by a balance sheet. 


7 


Q 


The following items are to be taken into consideration: 


Inventories | 
Rewomateri alsa, «os. maar Eadie yk w= Bo le wnt « $16,250 
PIMIGHGA COOGS, ++... 102s UP Pe Pe ee ee 9,386 
DOORS of crewla evens GUNES A Dic ial a Ak a <n erin wie: sees 38,000. 
OF dae Sarid. ta, Sleek OW oy aa ll ataelianabitititin. ate ia aneatel 1,000 
Pusniture. and Fixtures, «xs. ss> - inte nies airs Teac < 4,000 
otationery and printing, ...-.ee-caseres sel ates, oblate 300 





Allow for depreciations: on machinery 5%, on horses, wagons, 
and harnesses 10%. | 


Reserve for bad debts 3% on accounts receivable only. 


The item of rent $19,500 is to be apportioned as follows: 
53% for factory, 32% for salesrooms and 25% for office. 


The item of super rintendence $3,500 is to be divided 3/5 to 
factory and 3/5 to general expense. 


Ref. 32-1 
164 





a 
eu ; es ea hk a werk ee oe oe ae = eee een ee 
S & y 























oe i aig wei Che Se ee 





Boncerze comeled Letrt # oveds odd bee 

noiteteset: odt otsdifics? of as 98 tabte | oftse 
.atasastats avantend to Lsfomaatt 

»eiood edt aniaots unt eelrine Posvcsners-g pier 

teede soarlad 2 yd ad ivess. a Ey 


Cas se ME ee 
Biate i? _eepeeer eee eevee eeee+r eae eer” ste re gers gaDOlG bea ii 


i) aa 4 

Wie ete oo ond tes ao ue Se: crim eco a otal ec ee ee 
ish 34 = Pe 

cae So gay ies baw iewaewe te oe nes sotti 


JOS 4 EI 
taba bh daieeennon oheae 64 <a sadist 


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, OL © 


eee 


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ratoffot as hips ces ed ot at 00c,er3 tex. te mett 
.ooftto rot 288 Bas smootestse 10% RSS 01 sipeesene 
ape 


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.penegre fsronen ot als, 





PROBLEM NO. 251. 344 
(N.Y. C.P.A. Examination: 


The Candidate Manufacturing Company of Long Island City, 
N.Y. has an authorized capital stock of $1,000,000, divided into 
shares of common stock of $100 each, of which $500,000 has been 
issued and is outstanding December 31, 1911. The bonded in- 
debtedness of the Company amounts to $200,000. The issue is se- 
cured by a mortgage on the property, plant and equipment. The 
other indebtedness of the Company amounts to $723,500. The books 
were closed December $1, 1911. 


The following gives the analysis of the profit and loss for 
the calendar year 1911: 


PROFIT AND LOSS 


Purchases (returns and Sales (returns and al- 
allowances deducted) $150,000.00 lowances deducted) $341,280.00 
Freight, cartage in,.. 600.06 Premium on bonds 
Productive labor,..... 53,200.00 (s0ld during the 
Factory overhead,..... Se PERS fo ge claie oie. ce mee 1,000.00 
Repairs to machinery Dividends on stocks of 
and tools, .......... 1,175.00 other companies,....- 38,500.00 
Net decreases of in- Interest on notes and 
Ventories,......+-.. 12,000.90 accounts receivable, 690.00 
Freight and cartage Interest on bank bal- 
out 780.30 ance 213.285 
Salaries of Ssalesmen,. 8,000. 00 Sundry small sales of 
Commissions, salesmen, Spaee=VY (materialiasssecesss A 65.50 
BOWE EIG ING eo wo as a 5,000.00 


Other selling expenses 1,500.00 
General and administra 

tion expenses,...... 39,600.90 
ERR as ol tel 8-8 eke we Pe 8,830.00 
Interest on bonds,.... 9,500.00 
Interest on other in- 

debtedness,«...1+s. ‘ $10.00 
Reserve for deprecia~ 

tion of plant and 

Rr ING G cs ais xe * eee 3,000.90 
Reserve for deprecia- 

tion of machinery 


gS Ca 3,500.00 
Pe LOS Bin «a's 0 x0 4.0% 25,659 .45 


A 


5345, 748.75 amas 748.75 





Ste Se nntenmice 
The inventory at 1/1 The inventory at 12/31, 
TOV ide te. oe OSs Bats UES SO Yana #_23,609.00 


164 








ars, 
B38 . +125 OM waraons oe = | 
i nolcsaimexa wy eo YE) a a ay J 


«Vt iD Baelel , te yreqmeD entretestunell Steblhacd — edt cd ae 

Oimt fsbiv£b .000,00 0,.£2 te oe fetigss bastroasus as esd .¥ * : 

assed sed 000.0082 dolde to .fees OOLS te gdoete mommoo To seiete —~ 
wat bobnod edT .fICl ,f& rodmooed sat Saneeteal ae, si bas berees 
“96 of sveet ofT .500,008 0 oF etawome yore) sot? to esenhoddeb _ 

eaT .tnemqiups bas tant q ,.waeqory ona? a0 mo sysatiom & yc bexvo = 
siood sot .002,ST) of atmvoas yoeqmod edt to sasmbotdshai tocdto a 
et lGE é zodueosd besols suse io 


so esol base t¢ttorty sd? to aleylene sede  gevig naiveflflot out a 
 «“ LLL ss0y mebrolce ae - a 






































220 MMA TIVO a 
fs bas smigisz) sefed bas enivtst) essadoceT 


00.085 £253 (Letoubsb ssoraref 0. O00, ORBLE Teatenkes esomevolis 
ebmod m0 mutastt 00.008 «-,af egatzco .odziort 
aie edt gatiob b fos) 6. 008,68 o.-«+,t0Gel ovitorubort 
00.000 .£ é. siden beeen eae «(tssy  0C.0d5,3 -..+.,beedzeve yrotosT 
to excote mo ebmehived | Yretidce: ot extseqeA 
PC.008.S ....,89tmeqmoe sedgo 00.e°L I veveeeseseg GLO Das 
bas aston so testetal -*8£ to ssesstoob teh 
59.088 olde evioos: etmyogos 0C.000,sf ccescesess gSOlITOSNOV 4 a 
«Led dasd eo taorTetal . egsetiso bas oS = 
eG .ols é - one oc. af ‘oe 
<9 asise é — yrbare 60.000.8 »«rosesiss to estrsls2 
92,28 Cereeeocsse g lLblLtssan 00.0as <3 sneelisa «solee Lam0D 


O0.000.2 «........-qgmteitrevba 
00.00e .£ ssansqxs sailifes zeftO 

. #steininbs bas Iszemed - 

0O.008,S6 ......,89enoqxe noite 

00,068,.3 teen eee caw e nee  BOKET ae = 
00.008 .e - e+--,55aed m0 testetaI 

“fi zedto no seetetal - 

OC.0f6  os../.ece, 880nbetdeh” > 
_ wm—icetysb tot evrsest 

bus feelq to aolt 

00.000, 5 ones eee. gSosmgirps 

toseqes x02 evzieescH 

me yrenidoen 20 mols 

O,002,.é ees eenenene ~2loo? bas : iy : 
oe GOO Ee noon 3 + sibun oC oom m 


ee Te ARE cane 1 








E\GL te vxotaorn: oct? ) _  £\f ts yrotmevat sat 
OO ..003 88 Bees iseeucget 2007 202 903.d8 Zo ttre cece egeem EEL 
= Poi | : : a i ie. f v3 & ‘i ! 


245 


, You are asked by the Company to prepare a report to the 
Commissioner of Internal Revenue, to be sworn to by the president 
of the Company, in accordance with the provisions of the United 
States Corporation Tax Law of August 5, 1909! 


Submit-the statement and the working papers ee the 
‘items included in each group. 


Rei. 32-5 
164 


a iG 


. edt of Proge: & StEKSTT ot vapaees 
taoblestc edt yd of nxowe sd of pgp 
bos kat eit to enoietvorg ed? dé iw 


:e0@L .¢ Sang to. wed 
edt airforce 2 ateqey grbasow ox bas rt 4 


= 





PROBLEM NO. 3852. B46 








CO 
H 
= (N.Y. C.P.A, Examination) 
THE TURNWELL TRADING Co. 
Cash Cash 
receipts Credited disburse~ Charged 
Trial from to profit Triad ments to profit 
balance Jan. 1, and loss balance from Jan. and loss 
Jan. 1, to June June 30, Jan.1l, 1, to June June 3Q, 
2710 30,1910 1910 1910 wOy 20.0 1910 
Land and buildings,..- $30,000 | Mortgage payable,... $18,000 ¢ 3,500 
Horse,wagons & harness 5,000 | Accounts payable,... 9,000 23,500 
Investment,bonds...... 10,000 Interest on mortgage 150 «$ 210 
Inventory, mdse€.,...+- 11,000 Salaries of salesmen, 1,500 Leora 
Stable supplies,...... 150 SUrpTe po an sis tees ek gO 
ae ee eee ee 1? , 500 Capital stock,;,.... 50,000 
Accounts receivable,.. 14,800 $36,000 _ PUTCHABES, «us swbee es 230,000 
Interest on investment | 400 § 490 Freight, .«esseeesees 425 425 
Increase of inv., mdse 500 Stable supplics,.... 300 235 
Capital stock,..+....-. 5, 000 Advertising, ....+.6. 50 50 
Interest on bank bal.. 80 : 80 Administration, ex- 
BLOG ss s0 546s oF te kis cb 58,500 penses | 6,500 6,500 
Horse, wagons and ; 
HALNESSgccseseveee 500 
"ge ,450 $41,480 £39,570 $88,450 $35,185 &28,995 


Prepare a statement showing amount of ledger assets as of January 1, 1910; add to this 
statement the increase of capital stock and the income of the period; deduct from the state- 
ment the disbursements of the period, concluding with a balance sheet showing total assets 


as of June 30, 1910 


e Oo~5 
Ref 164 








f Bis ois 2p 


ae 2 sag re 





; ae | 
PeLbenat** s+ eee sss 
HoRre* ugGove sq 


feo*¢20 $90? r92 #2 Aon * gap 





bevece | | a thee! 
yomyuyepgrsgroy* exe — | @. 200 
VRACKPTOTURP +++ +s a: 
-efenre enbbyron’--- 300. 
a i Gt steerer eer ee wl 
BMiapuncat ess ses sess TSP 


Cebyfey onfoce*?*+- +> ero 
Se 









Juacomeus’p uses eee | SeyekTOe@ of osrpeawon*- Petts 
Ferstinge poee bie rn Ivpotese ov MoLrpese | ee 
ee os PtizeyuseT + te _ Yoosauge Beaupre +++ 98900. -32*260 
we 000 é yyoxu ire Re her. tpre?* “ee wd 3 a4, pte: 
‘JeI0. + 20°T8TE =~ TATO GT3"900 - $ 2°00 
qgp* y* fo 4fNe ane 20° | Tayo | 20° Foro | 
PSTIVeS que 7° sug foan | fsa I 20 Yue * 
Bete] reo’ © go Hhorte ES SS ee 
LeaeTber Qtheq? seq | bk GST 
arnp 
LHE rrr IhvbtHe co* : 
es (u"X* O°R"V’ Bxomyusrrow) | jas 
itd cos —- 
BHOBPEN uO" s28° ase s 


PROBLEM NO. 253. B47 
(N.Y. C.P.A. Examination) 


The Cambria Company is engaged in the manufacture and the 
sale of millinery. It buys and sells, in addition, gowns, veil- 
ings, laces, furs and novelties. Its factory, salesrooms and 
offices are located in one building, 


Ail its sales are made by salesmen or saleswomen either in 
the salesroom or on the road. Millinery is sold at retail and 
wholesale, while the other classes of merchandise are sold at 
retail only. All retail sales are recorded by means of sales 
tickets mumberec consecutively and used as a direct medium of 
posting. 


Fholesale sales are made on credit only, while retail sales 
are partly on credit and partly for cash. 


The firm desires to obtain accurate results of operation 
regardless of overhead expenses of each class of goods. 


It also desires a form of retail ledger that would reduce 
the considerable labor entailed heretofore at the first of each 
month, due to the fact that the monthly statements give details 
of sales to customers. 


(a) Prepare proper form and ruling of a sales summary to 
take care of the retail sales only. 


(o) Prepare proper form and ruling of a retail customers? 
ledger, to comply with the requirements mentioned above. 


(c) Give instructions for the operation of two books. 


Ref. 34-1] 
164 





= 
at 


froltemimexd. oA q.9 *. aa 





















SAS Bas sistosionan edt wz bensgns e e 
~“LIAV ,Sitvon ,moliibas at <allas ious pte 9 (SSM. 
bre esmoorscles ,yuoroFt “att Reh oe wihbey ‘boy Sanh : 


meshes tgs o at betes 


ti xsitis nomoweelcs 20 aeapelse yd ohem ors ostaig ett. I. 
, Ome Iistor te Bien si yteqiilin .Bbeor edd ac x6 moo cele 
te Slee ots seibuedores Bo eecaslo roedto ont ortee 
esiss to sas yd bebroos: ers esfse Listex LLA 
+0 -ayibom gosath sw as beag Bue ylevity o2emoo Soxadaure et 


es{ee Lister slide .yfao ¢tbeto mo shem sts asfes olaacl 
deseo i0t ylitzag ine tibexs 0 itaea © 


| etiuney etezuscs tietdo ot sevieeb mrt odt 
eaboag to saslo dose to soareqxe Keovrevo te ttle 


oubst bivow ted? teghel Lister to mrot s eextesh cals FE 
“ane io derit edly te stetotercod Bbellatna redal ofdsrsbleaon. 
iiintoh eviy ataonetete yldtaom adt gadt tost sdft of phe ic ae 


ited 


-brsmotave ot #86, 


Of ymemuve aefes 6 to gotfes bes oot TIIOIWY. surg ext {s).. 
-yiao soles tister ect te | 


'Sxenotesgo Lister s t0 gaifey Bas ool roqorq eseqort it oe Bat 
esveds bhorolinrem etneworlupex ea? Ain yLgqnoo OF oa 
-8food owt Io aoiteteqs sd¢ ro? vay Sener ast ori, toy ee 


doe 





PROBLEM NO. 254. 
(N.Y. O.P.A. Examination) 


Prepare a plan of a depositor's ledger for a trust company 
that allows 3% interest on daily balances. Incorporate in this 
plan the following particulars exemplifying X's account. 


: Deposits - July 1, 1911, £5,000. October 1, $50. Nov. 1, 
yoO. April 1, 19128, $50. May 1, $60. July 1, $4,807.78. July 
1, $2,045. August 1, $100. Nov. 1, $120. , 


Withdrawals - July 1, 1911, $4,245. July 1, 1912, $7,103.30. 
Ref... 35-0 | | 


PROBLEM NO. @56. 
Sry eee eae Examination) 


The Cinema Company, leasing moving picture machines for 
theaters, has 1,000 machines in operation. On January 1, 1915, 
the company decides to increase the number of its machines 80%, 
and places an order with the manufacturers of the machines, who 
agree to complete and deliver the new machines in equal quarterly 
instalments. The company arranges to borrow $60,000, by the sale 
of five-year 6% notes, it being agreed that a sum equal to 20% 
of the total issue shall be set aside annually out of the profits 
of the company for the redemption of such notes. The average 
annual cost for maintenance was found to be $120 per machine, 
and $24,880 was estimated for other expenses. 


What annual charge per machine wonld the company have to , 
- make in order to meet its obligations and pay a dividend of 10% 
on $200,000 of its capital stock? 


Ref. 38-4 
164 






“B23 ON MMGORT 
| (sOiteasmexd AT YM 
weeqaoe tours os 10k rsmbel a*roticoged # to make | i 


ofdt mi etersqioonl .sesaaled ylieb fo tsorerat 


< ‘oh y p: 
sFaycooe o'*% gniytiiqnexs arslusttreg ant reEfo? oi te 


£ vol 08% , xodotoG -.000,23 tC .f yivt = atteogod = 
eine -80.T08,a% .f ylet 1088 ,f yal .083 e8ler of er -,005. am 
| i -Osty «f vol 0088 ,f tawaua .38 re 4 a 
-O5..005,7% SLO yf yfob 20s ee tfer Vr elt + Blerethdtit 


Sect stot! 0 


sooel : 





.s 


838 .O% NarEORS ae 
(metteaimex® .A.T.9 —.¥.%) + 


202 semisoem stutolq satvom aalacsl ,yaeqnod smemtd AT : oe 
«CLlOl ,I yueumst 20 .aoktazego at esntdon: 000,f sed ,erstecdt i 
208 @onidosm e¢i to tedaua eat 96h510nf OF sshloeh yasqmoo edt = 
om .eenidocn edt to sxesutestwana edt tie rebzo ac aseslq bas 

Yivotusmp Leupe mi sextdoem wen edt sasileh bas stofymos of s8taa” Mi 
Sie8 sit yd 000,083 worrsd o¢ SoRieits yasqmoo scT .etaoomletend 
- O08 of Laypo mya s tedé beers giled tf ,setorn 53 tsey~sovtt to 
asitoxg ed? to tuo yfievane abies tee ed Ilaria streck Istot edt ts6 
S381978 sat .setom dove to molsqnebes sud tot yYaeqmoo ed? to +, 
oaidenm req OSf¢ od of bavot sew sonsno¢aten xot feo isvans.. 
anne -s9eregxs isdte tol betsuttse env 089,896 br 


of oved yasqueo odd Blrow entdoss teq exasdé leven tai? . > a 
“OL to brabivks « ¥oq bas anoliteglido sti teem of rebro al sdsm 2 a 





fidoss Ledigeo ati te 000.0088 ao. | 





PROBLEM NO. 3256. 
(NeY. C.PeAe Examination) 


The office of a firm of traders, doing business in San 
Francisco, was destroyed by an earthquake. The books of account, 
which had been fully posted, were badly damaged. The following 
ledger accounts were found to be legible: 


Purchases, net 969,000; discounts lost, $640; discounts 
gained, $3,450; sales, $54,000; bills receivable, $33,000. Inquiry 
at the bank disclosed a balance on deposit, $129,000. Bills re- 
céivable amounting to $45,000 had been discounted at the bank. An 
audit of the checks paid by bank showed that $99,000 had been paid 
creditors (including $60,000 notes payable). A balance sheet pre-. 
pared at the last closing of the books was produced, containing 
the following items: 


Cash, $60,000; accounts receivable, $126,000; loans receivable 
£24,000; real estate, $90,000; notes receivable, $78,000; capital, 
$318,000; notes payable, $60,000. 


Prepare a trial balance supplying the missing accounts. 


| 164 





288 OM MEISONT 
. (rodtemtmsxE ele. 9 Yom) ; 


ns? at esertesd natok (axrehatd %6 welt 2: to eeftto oat 

~tmuoces to edood edT -.odeppdttes as yd st Saperrirn:—» snl oc 
nrivoifot siT .bevamsh vfbsd stew ,boteoq yliut a ed bed 

: :eldigel ed ot bessot stew efmgoocr 


is 
Le 
























Ps 


ataroseth ;O0a09 ,taol etmoosth 000 C32 tere soak at 
yYrirepart .000,o& .efdsviteoer ailiid £008 366 ,eotsa ;Och, t 
est siffa .000,eSfe..¢fsecaqsS ac sonerad £ bsooLoe tb aed 
A .insd edt te bstavooeth ased bs 000,ch, o¢ snisnmomes coreee 
hisq mood bed 000,002 tsde Beweda dasd wd bisq edosdo sit to +bbes 
~siq tesde sonsfa¢d A .(oelfdevyer aotom 000 08s naibylont) etosibers 
: gainftetnos .hessborqd esv aaood ent as anteots asl eft ts Dex 


| actos t gaiwolfot 9 
sidevigooz areolf 7000, aails  .eideviaoer ai aoo0s {000 ,0d¢ iesd 
-istigso ,000,ST)7 ,sidevisost gseion ;000, O88 «testes Lser 2000 887 
2000, cad eldeyer aston ,000,8fé¢ 
-ofmyoocs grtacim ent aniylaqee sonsted fsiut s oxeqerd 


E~0e 





$2 





£ 


PROBLEM NO. 257. 250 
(N.Y. C.P.A. Examination) 


TRIAL BALANCE OF THE GENERAL LEDGER OF JOHN DOE, 
CIVIL ENGINEER, AT DECEMBER 31, 1911. 


ce 6, | kar $10,572.44 Manhattan Construc- 
Furniture and fix- Wenests ic vee. & 5,000.00 
aeeod. +. eee 1,054.68 Report #1 Swanee 
Real estate (Ruther- Creek Railroad,. 5,300.00 
Ferd Homey oe... 6,000.00 Report #2 Englewood 
Investments in NERC TVOLY 2 e's >. 5 4,500.00 
Wome Se Be oc ote 15,457.50 Report #3 Long Acre 
Investments in Lf berg: tog Pee : 3,200.00 
Leche tal peas a mae ee 3,000.00 Conn. Tramways Co., gS wt Pet 
Missouri Pacific Earnings = consult- 
Margin Account,.. 13,000.00 BE alo eel SE See 3,000.00 
Accounts receivable 15,361.33 Report fees,....... 16,000.00 
General expense, ... 9,800.00 Sharp & Company, 
BRC OCG wes 6 56s > 2 1,060.00 DPOKCTS, «262 2. + 11,310.00 
Stocks and bonds,.. 4,300.00 
aera tie Cte Bile aS Se Shae oo ees 21,745.94 
$75,305.94 $75,305.94 


Analyses: 


General expense - salaries; John Doe $6,000, other salaries 
$1,800; rent $1,000; advertising $600; cables and telegrams $90; 
stationery and printing $110; other expenses $300. 


Interest - debited with £1,300 charged by Sharp & Co., brokers 
on margin account; reduced by dividends of $390, credited by Sharp 
& Co. on margin account. Balance on loans since repaid. 


Manhatten Construction Co. -— represents consulting fees re- 
ceived during the year 1911, the contract running from month to 
month, with no expense to John Doe. 


Reports 1-3 - are completed and delivered. Account contains 
fees, less expenses. 

Connecticut Tramways Co. — represent $2,000, received Nov. 
1, 1911 and expenses $50; according to terms of contract, John Doe 
is to act as consulting engineer for 10 months and to receive al- 
together $5,000. 


Report fees - fees received under contract for report. 
9,000 received on contracte on which no work has been done; 
balance is earned. 

Stock and bonds - are sold. Account represents balance. 

164 





























ee Oke ee ee ee 
oag ToS .O” MEIGOAF 
:  (rottantowed .A.T.9 <P) age 


700 WHOL YO AINSI JARINZD THT FO FowagAG JATAT 
fer £8 PIIMIOTC TA .TTIMIONT JEVID 


= ss sousteno0 metésdnsl 36.992 .073 ces Te ee Tenth ee 
OUs000,2 $. svi. ive oop gee ) “xi? Ree ott tc coe oe 
sonsve fa txroqgeH 88.4c0.f +s ob, ae EL 


00.008,2 - beotlish aAsexd ~713isum) siatce Lsof 1g 





boowefsad St troqgef 60.000.3 ~.... Comat Se6E 5 
3.000. 0 “pele .siovressi as atvantsevel 
| er0A gaol &% SroqgeT O8@.98S,20 .:....2:. ,sisosa 
00.003, ss cae cag Queuehd | , gt adnomteeval — 
00.022,f£ ,.00 sysmnesT .anod 00.000,5 ..... +15: ,ebaod) 
-tivemoo + egriazsit oitios® fxyosela 
OO.000.8 “ein eogenuan swat . 00.000,tf ...t#nuoood migzsi 
00,000.88 “| «tteeke «3902 Sroqgest St. l[5e,ci eldevisost etawoooA © 
«Vasqnod $ qred2 00.008,@ ...,eameqxe Ieten8D 
GO.Ofe ££ esse coes gOtOSOCd OO.00R. £2 SS eee -,testesar 
00.002,5 «-,8bnod Das aztooet2 ; ‘on ae. 
La ae * ees - fas iqsd a 
d2.208 8 ) $E. 208,273 | <i 7 
5 roseylsma 


esitsles szedto .900,33 sod asiol ,eeirel[es < eenenxe LatensD ' 4 
(CES saeryslet bus seldeo (008) gatetstevds 000,19 taet {008,f§ 
-OOS$ eseneqxe zedte 7OL53 gnigaiig bas yrssoitsse 


eredotd. ..09 & gusd2 yd begrsdo O0€.I3 d?ive betidsh < teeresal Fr 

trsdi yd betibers .OC&% to ebaebivib yd beoubez jtaycoss aiatem so 
-bleqer sorte snsol go sonsl{s@ .tmyosos aigrsm mo .00 S 

Se 

“or Gost gaitivenos atmezetqer - -00 mottowstenod nettsdnsM 

of demom mort gainasri gesttnes add ,IICL xesy ont gaiizt bevieo 
«800 ado of ssmeqxe om dtivr .ftsom 

atistao® tayvoooA .berevifeb bas betefqmoo ere ~ Sef atsoqeh 

_e@Sereqzs esol .3esk 

«vO bevieset 000,89 dmeserqez = .90 eysrmerT tyoticeamed 
900 micl ,fosit#moo te sats? oF gaibiosos ;0&2 seansaxs bane [Ler oN 
“fs svisoor of Dus sotaom Of xot teeagnne gnitlvecoo 8s tos of ak 

2000.22 redtsg0F 


-T10qJer rol teosttn]es tebay bevioost 999i ~ eset sxcqet * 
19006 mead asd dior on doi so atssxztaco ao bevisaer 000.8% 
ae -Sentse ef someled 


-soasled efmoeezqex sayooca _+bfoe ete - sbaod bas soot 
sG | aot > + <a 6 


Bol 


Additional facts - dividends on stocks received during the 
year amount to $1,985, of which $1,000 was applied to the 
account Investment Stocks, and 8085 was applied to stocks and 
bonds sold. ~ 


Prepare (a) balance sheet at December 31, 1911 with your 
certificate attached, (b) income statement showing John Doe's 
trus earning power as a civil engineer. 


PROBLEM NO. 258. 
(N.Y. C.P.A. Examination) 


The Sea Side Bank having 9,000 depositor's accounts, on 
which the bank allows 3% interest on daily balance, requires 4 
form for its depositors! ledger that will enable the bank 
officers to ascertain accurately and quickly the depositors’ 
balance including the accrued interest. 


The following Items are to be incorporated in the form 
Submitted: 


Deposits, July 1, $5,000, October 1, $50, November 1, $60. 

Withdrawals, July 1, $4,245. 

Submit the form and calculate the interest to meet the 
requirements as of January 1, following. 


Ref. 42-5 
164 


Xs 
Rs ma | 


















3 prion pest - pen femottibbA 


- ‘ . fom 
od3 antuvh bevisoss sxo0s8 & | 
~ ts o¢ botliage eet 000, I¢ dstdw to «282. L0 of sSyome 
« efoots ot botlage saw e809 Sas eioore Bice ra er TLIDO 
yer mM Og ae ae ee es bed & bE me thas 
ore eh ee gy ae ceria | 
nivoy Htiw ([ef ,f25 redmece Gs Joeda ao oneLed re 
Stood afob naiwode smonetete amoomt (d) ,berionsee tae 
-reeaigae Livio s as tevod Sutras Sua 
| eat at 
ry oy A ye ter pees eT, ae 
* Ras Ou MIIAOnS : a ede alo 
(roftts amex ef om: Vs) | 
Foal * ae J ne 
co ,sinvoooe e'totigoqeb 000,° gaive ee anei: Seg = id 
settuper ,aonsfad yliab ao tesretnt 6 ewolis war < 
ined odt sidens [fie sedd teRdel ‘arog Laogqeb ads oS 
t-sot¢isogvah oft yidotup bas ylodamvoos 4 ristresss 9° ef 
°  ,georotat Domwxoss edt aihefont « 


rot od mt botproquesal od of srs med ; guiest ios ont 


sem o¢ teoretnt edt  Rbooreaaye 20 bre mrot "eat . rive fer 


£5L 





203 


PROBLEM NO. 259. 


(N.Y. C.P.A. Examination) 


The directors of a manufacturing company submit the follow— 
ing trial balance to an accountant, requesting that he inform 
them as to what percentage of dividend they may safely declare 
out. of the year's net income: 


TRIAL BALANCE 


Pes.  ehtete oo. be... § 94 


Plant and machinery,.. 


» 000 
80,000 


Patents and goodwill, ..160,000 


Inventory December 31, 1916, $53,000. 


Inventory, Jan.1,.1916 58,000 

3) Sacer: 112) ne ae 165, 000 
[ON Sa 5 a as a ee 176,000 
ROG, wis NIN Cls Se ee SO See 13,000 
Halaries, general,.... 22,000 
Salaries, management,. 10,000 
eoeuronce.j 2. Fs eS OM me er eg 
Ae edie awe ene Soe 8 2,000 
Claims and allowances, 123,500 
Prepaid freight (in- 

cluded in invoice 

rake es SS ee 3,000 
Interest and discount, i, OU 
ER 3 ON are 16,000 ~ 
tvwvectmente) pe Os 51,000 
Miscellaneous ex- 

TPS Se iat s Sa ee 8,600 
Accounts,receivable,.. 84,000 
WEI cit, Jane 2, WIG, B, 000 

6939 ,350 


DECEMBER 41, 1916 


Caerteal stociy cs wks eo ss €422,000 
ee a ge eee ana 438,350 
Accounts payable,......- 20, 000 
Notes payable,.........- Vy ODS 
Dividends on stocks ; 
oh e4 Les) REPO Re OP EGE 3, 000 
SUG Presa a Sie a ia ete oe a a 4,000 


8939, 350 


Four employees, A, B, 


C, and D, receive as additional salaries the following percent- 


ages of the earnings measured by the net income: 


C 6-1/4% and D 6-1/4%. 


Ref. 43-1 


A 25%, B 12-1/3% 


Furnish the required information together | 
With a financial statement and an income account. 


64 





& att gh 
me Pt 5S eee 

. fh 5 ad ae @ tt 

_ &~ at 


“ee et as oe 
a aa ; 5 at 
“a 


















































Pi eS a EN 
es, 
ay. se ie 
sae 
£28 Oi waIeosT 
(gottantassd aE os ) 
oft tindirs yneqoo gafustos tunem a to 4 
t ad ser? yciteoupet .toetavooos Ms ves 
& yfstce yaa you? baebivip to sgedmeots 
somoomt ent o*% 
S£@r ott FINS aa SOMALAS rete? a a 
iain ane .zoo0ts fetiasd 000,8¢ ae nat ae eg obese 
Pe ae .. eels? 600,08 ..,.Ytemidoss brs - 
pice gaan .oldsysy stmjoood | 060 ,,0cL. -<it twhoog bas evans 
oe sean g Oa Ldsyaq: estou O00 .S¢ erer of . 6b ‘<ezetas 
axcote mo abmebivid 000,03L........++++=480Gs 
- ++ 0 g OTERO / O00 ars eta a0 6 eFig 6 9 6 Rg 
te i a-Anes eee ® ,oiassren (900 ,af Perrrrr. y rrr it 
DOO .68 ** * - « fer90neg. eet 
600. Of . daomegeten 86 
oat eee ta 
000 .& eee SE a 
008,85  ssonsvotie has 
ent) tdyiett 5 
3 eotorval at fe 
O00 .¢ wien es s0 eae se ek 
O02 .f etavooelh bas sd 
000 , ar ee ee ee on . 
000 te ~evvn a cies g QO 00M 
| _ «xe syoonel, 
O08 8 niece ee eee 
(000,88 .., eldevieoot, ain 
000.8  ,aker ,f -met # 
Oct et 
aia tirod .000,Se9: 4G8er fe todimsoed yrotaers tha 
¥ Sate fot est eeitsiee fenoisthbe ef ovieoss «a Pe 


Cra. TSA Oo £ i: 3it ais wd H&iUeS Oi e MINIS - ier 
idenrotai boitupex edt detatyl ~8 4 Bre P4\L- 
 feuyosos smoomE ne base Sxomesste Pomona 









253 
PROBLEM NO. 260. 


(N.Y. C.P.A. Examination) 


A firm of bankers dealing exclusively in public utility 
bonds want a convenient for of statement that will enable them 
to tell at a glance the number of bonds to be accounted for by 
the cashier and the gross profits on sales of bonds. Draft such 
meavrm Lor the bond blotter. 


Ref. 43-3 


PROBLEM NO. 2361. 
(N.Y. C.P.A. Examination) 


A manufacturing corporation, requiring additional capital, 
presents to a firm of bankers the statement given below, with the 
request that the bankers underwrite the proposed new capital 
stock. The corporation has secured a war contract from the 
government, which is expected to yield very large profits. Capital 
is required to increase the size of the plant, as well as the work- 
ing force of highly skilled employees. Analyze the statement for. 


the banker and comment briefly on it from the accountant's stand-—. 
point. | . 


JULY 31, 1917 


Beam eGtate? fo) .60.3 de. 9081 ¢ # 90,000 : | 
Capital Metco, Syorir. vs weny! | $100,000. - 
PACU LBEY ye tun CPC ON Paw nes was 10,000 . tee 
Advances on contracts,....... 50,000 
Publ Ginpe go 2k Es oe. OOS. Se 40,000 
AceCtn tal Gavabie 5. 509 150056. . 43,000 
MOLE AL PROCEBAG Ss. ele o. OX 10, 500 ee. 
Str clude ave. Or. SUS. 160d. 92m 6,500 . 
Materials and supplies,...... 8 , OOO 

eRe ie te ied Sige Sh eae or Saray ete os re uD 

GOosw Hr] SOCse .S 7s. Seva Ss Ss 30,000 

Deferred charges, -2.00. ‘awe a 2,100 

Accounts receivable, ........- SG 06 BOO. Cro asary v: 


$198,300 $198,300 


Ref. 44-2 
164 


ere 






ae. '.086 ot scaore 


(nottentmex -A.T.9 .¥-A) 

esilito oliduq at yieviewloxe gaifeeh sreamed Jo mit A mes 
modt olfdsae IfLin tedt tasmetsie to rot tixeinevmos # gasw 2baOG | 
yd rot botayooss od oF ehrod to rodma elt somelg & + lftet of > , 
doua gicrG .abmod To eslee mo atitexg eeorty edt tae rsitdeso off oe 
)  ,resrold brod eft +07 ci0t 5° Sie 


t x - J. i a a 
- See ste 






vd 


£86 .O% MEIAORT 
(nottemimsxd .A.T.0 .¥.1) 


a a 


aa 


sigeo [anoit this gatrivpet oltsereqzoo aivuegostuass A” | a 
edt dtiw .woled nevwig tnomotsts oad et it 2 perigee = 7 ae 


fstigesd .stkierg egiel YIsv 
-trow gdt as Liew se .tasiq ; betiupet o4- 
~ot tusmetste edt ssylemA -2eoeyoigas beflide yidgid to eorot gad 
cbnets attasdavocos sit mott ¢i ao yltelad tmeumos bas teined oat 





| : yrer fe YIU... = 
600 ,de 3 a ee a o ugles wee on g OERIRO 148 } 

000, 0059 - ce dwbuvartinsee ORtS Teekaeo me 

“oe , 000605 Cp eres canes se @¥TQRdaoan . ia 
000,02 | ~ ss +e + gS ORITHOD mC BOONSTDA | | ae a 










000.8  . sss se peekkaawe bas afsizoten 
00¢,¢ Seer Geir SP Ale a 2 - 
000, 02 rere ee ee -* a gi liRsooe va; a : Bae s:, 
Poon een illeegzeno botrstst =” 


b ecatee 1. eldevisost etmvoooA 





Q0E,8063 .. 008 .8eLs 
Ie ee 


pal 


eas Pe ee ee. ie ene ye] ee ee 
omelet ee ey! ne ET ae ee ee Pe, heh 


254 
PROBLEM NO. 262. 


(N.Y. C.P.A. Examination) 


R & Company and S & Company, two large umber dealers, 
organized a syndicate with a view to a consolidation of their 
lumber interest. The books of the two corporations were ex- 
amined and all assets valued by appraisement, showing the follow- 
ing result: 


R & COMPANY S & COMPANY 


STA a a en charg x ugh. nj case,» a's $1,500,000 $1,000,000 
Phe le foe Te: 0 1a ye a a 700 ,000 800 ,O00 
Trams and logging outfits,...... 100, 000 150,000 
Mill structures and equipment,.. 200, 000 250 , 000 
Materials and supplies,........- 20,000 30, 000 
EOC eeL Ah COIN olaeio mein ni Wie a lx wie 100, 000 200 , 000 
Sawed lumber in sheds,.......+.-.. 230, 000 330,000 
Bilis and notes receivabie,..... 40,000 30,000 
to5 aa: AM Cols 010) + a: are 110 ,000 330, 000 


$3,000,000 $3,000,000 


The syndicate organized the Upland Lumber Company and sold 
to this new company all of the above property and accounts, ex- 
cepting the title to the land. The syndicate also entered into 
a contract with the new lumber company, conveying the right to 
' cut and remove all standing timber, on a stumpage basis. The 
syndicate agreed to accept as its consideration for such.sale 
$3,000,000 of the Upland Lumber Company's preferred stock, and 
3,000,000 of its common stock. 


The syndicate aiso organized the Hilltop Land Company, and 
sold to this new company all the lands, as well as the stumpage 
contract made with the Upland Lumber Company, receiving as its 
‘consideration $1,500,000 of the land company's first mortgage 
bonds and <.1,000,000 of its capital stock. 


In organizing these two companies the syndicate paid into 
the treasury of the lumber company $500,000 in cash, for an 
equal amount of common stock, at par, and into the treasury of 
the land company $500,000 for a like amount of its capital stock, 
at par. 

Prepare a balance sheet of each company, giving effect to 
the organization transactions and to the purchases made by each 
company from the syndicate. 


Ref. 44-5 


ae ee 
— bs 


das , | 
.So8 .Om Macon? 


,otofsebh xedast ogtel ort ,yneqnod 4 € fan Yasqmod oH 
aiedt to moitsbifoanmoo # ot weivy 8 dete ateolbaya s Sos tansy’ 
mx oTer acoitsroqros ows sat to edood eaT ..feeaetn: TS 

-wollot edt saivode .tnemesistqgqs yd Soulev atoces Efe bas hentia 





wer otOm 6 © ae Sey OR 
Tana. 3 3 YuATOo 3 8 


00 000, I> 000,008. I¢ ) ** see + ‘ial eee eee oe .ebast xodmtT. : 
& 








000,008 OOO, OoY eon nals = = eee ee gredaute na tbassé <] > ee 
006,0ef 000 ,OOL toes gat ltdue gargnct pae axcrt «© =i 
600,085 000 ,OOS ..ainongivpe Ans esstuterite LLIN 
900 ,O& 000,08 aeeesees @9liguye Bae eletretes 
OTO ,00G 600 ,00L Lau veawease whee g@OOC O07 BD aged 
000,086 Q00,0c5 - eevaeseeeyebene St tsdaul bares | 
O00 Cz OC , OF | .. es gaidevisoss, sotom hae aitle b 
000 , Oss COO,OLE tae es ees . vee, 8tavoocs *etemotex0 ; 

a 
Blos bas yasqmod stodemd baefqU od? bestaegzo eseothbays eat 4 


~azs ,siayooos bas yiueqoag svocs suis to Ife yaeqmoc ten etd? of = 
ota berotne cole otsoibaye sdT .bael edt of eitit ext anitges a 
ot ¢dyix ad? gmiyevaco ,ymequooe xyedmul wen oct diie tcriutass B ee 
edt .atesd opeqmds s ao ,tedmid goibasis fis evonue:' bas too a 
afso.doue 20i motdexosbiemeo «tf es tqsooe OF SesTSe steolbare | 
bas. ,Moode botretery a*yasqmod redeml Saslql edt? to 000,000.88 2 
~xoo¢e monmos avi To 000,000.89 | 


es 


bas .yasqmod bred qgosiiih od? besinsgro cete« stsothays edt Seas 
eyscmnts sit as Ifer es ,ebast od? ife yaramoo wen eidt ot Silos 
sti a6 guivieses ,yaeqaod. socal SasiqU ont ative shsaa torestaeo 

ejegizom terit s'yasquos baef sfz to 906,008, £2 nolttsteblanog 

; ~woots fetiqso etl to 000,000,f3 bae shaod — 


otai bteq etsoibays edt. setmeqmon ov? seodt gaisicegte at 
me tot ,deco st 000,0083 yaequoo sodmul ont to yuweseat ods 
to yrvesexd sit otmk Bas .te9 te .scotea mommos te tmrome Leype 
~woote Istiqso eft to énuome oil 2 tot G00,008¢ yaermce bast ode 
| <tsg ts 


ce = ; 
ee Tr afl -~ 


“ 


of footte gaivts .ymeqaoo fore to teede somsied & etaqemt ~~. 9 
dose yd sbou ssasdow;g eft o¢ bus emoitesens1t soiteriaseto ett «a 
| ee eetsoibays ed? noti yasqaoo 


a=} . tet 


sol 





205 
PROBLEM NO. 265. 


(N.Y. C.P.A. Examination) 


A fire insurance company began business with a capital of 
400,000 and a surplus of $400,000 paid in eae At the end of 
en year its books show the folloving: 


Inc gross premiums ~707,135.84, less reinsurance re- 
pates ae pie premiums | “94,971, PY fe interest on mortgage loans, 
received in cash ,6,8035.65 and interest accrued and due wl,049.87;3 
interest on collate ral loans, received in cash $1,014.44 and 
accrued and due 4,328. 983 interest on bonds and dividends on 
stock, received in cash {16,841.65 and accrued and due $186; profit 
on sale of assets *4°304.52, 


Outgo: gross amount raid for losses $115,048.22, less serach 9 

ci4, 900; gross claims for losses in process of adjustment 

woos eee 85; gross clains for losses resisted £8,618.50; less due 
and accrued for reinsurance (11,412.71; commissions | or brokerage 
paid in cash $133,544.19, and due or 40 become due 59,519.24; 
Salaries, fees end all other cherges of officers, Gterks and other 
employees paid [24,755.68; rents paid $4,224.93; taxes, licenses, 
insurance department fees paid °9,764. eid all other expenses paid 
$20,830. 12; due and accrued exrenses $621.29; due and accrued 
return premiums $9,597.36; due and accrued reinsurance premiums 
€6,855.48. The market value of securities owed was $30,625 less 
than their cost. 


The rises or foxce-at the end of the year carried premiums 
of $580,867.07, of which sum $494,747.65 was the ,egeregate of 
_ premiums on risks running one year or less, and $156,119.42 was 
the aggregate on risks running | more than one year, the unearned 
premiums on which amounted to $111,950.46. 


Set up the income accounts, making due allowance for unearn- 
ed premiums. 


Ref. 45-5 
164 






































0 ; 7 
we 20g 0% seareost 
‘ (nottembuer® -A. q.9 0 


to fcticso « dtiz pasztoud mages yaeanee 6 concent exit k 


to bas oft #2. .deso at biey 000.0084 to aut 
rgatvofiot edt wode 4 ' 


+ soasryenter seol ,6.cel, TOTS euyhsozt eeor3, socal 
3237 aos mo teste?at Saree sau imety amist bas 32 
eyh brs bewio0s teotesial bas 25,.2C8,8, das? al 
%. Bf0,.f3 deso al Sovicost womeoL fsxetelfoo Fs co tes: 

ae chgobiv tb bas ebaod 0 tevzosat Bs story we 8 


#itoxry ,86f eub bas borroos Dae Ch2f33,5 daso st bewleost oe 
1ed-208,25 esese Yo ofce ac 


segevise casi ,.55.520, arr ageeol tot Skerz goons eeots : ontu0 

‘tmeutey{bs fo sesoorg at aeeeol tot emislo S208 eitege 

eub seel ~0é.3f9,8. Losetast ss essof tot aatseio asota | 
gjotaaiosd so aaotees maga jiv.Sieelif2 eoumswenisz 02 beoxaoe bas 

Sé exh smooed of zo sub bas - Cf. 002 .88he. de deso mi bisq 


725 .0fc,8¢ 


zedte oats eXxofo ,ats0lito ri geqisdo xento ifs oe / g8e 


a i 


a 
7 vi 7 
eu 
Se 


{bS.8ET 5 > bieq sssyors be 


Pe asamooks ,eoxeet 2ée obSS,9¢ Bis= siist ' 
bis@ sesmeqzs zodto ffs «CG. h88,E,5 Sieg. “eos pian Poets Guta 
borrsos bre oub 128.2822 eseme Tx9 bess0ce et gub 21205840 7 
esutmery somemuomre1 beysoos Sap ogh ~T28,2 nen Laer ae | 
aera 


east 268,05¢ sev Semro esitiasosa Yo oe fexzen 6cT 
tae Mash 


emrinuesg Befrxso iusee od? to bas edt te eorot at axeizt act. 
to o¢egerags emt est 33. TST .2882 mus dois to Pi spt foe. 
ser GB.CIL£,ocfG bas ,seoi tO Te6y SHO maton eieli 20 eng iy 

Semiseay ent et&9Y eno nedy 910m Ropar eet evstit £o OFeRQOTERS § 3 
+33. oge, fi o¢ betavens defd= xo eas hm 


ecreem 16% eomerofis evh gatden- eae embont edt 


“bas 


PROBLEM NO. 264. 
(N.Y. OC.P.A. Examination) 


A professional firm require an estimate of their profits, 
and a statement showing the Fa SPAS Sten of their cash. The gross 
fees are estimated to be 50% profit. The books are: kept on a 


ash basis. Prepare estimate and statement from the following 
sane: 


Cash receipts from fees, ........-.+ecee $218 , 000 
Pre Le Cee. AOCOUNTEs:. gals. Sid oe Oa Siete. 42,000 
2S CEB a lcreal cp goles a Ge a, 65, 000 


PROBLEM NO. 2365. 
(N.Y. C.P.A. Examination) 


A public library presents the following trial balance of 
its ledger: 


Ajlen fund for purchase of historic 


PIC erate. Ot ey oes Beas wean ses § 92,000 
Smith fund for purchase of Civil War 

SL GOTACTS fo ols bok « <wheen ake a6 be 18,000 
MECELOTS LEO 1CaG DOOKS, «..c ee cwnenes 100 
Membership areal L[EGGy « ss «65+ came ved 14,500 
srcome Irom Alsons Pimd jas viene we ss eandin 3,680 
Eneome si rom SmAGh Lutes «<x sae ow oe ejens 540 
Salaries and sundry expenses,..$ 8,640 
Re ar ee ceils) a trh-gtalw ack ows . 6. 400 


Purchase of historic literature 3,400 
Purchase of Civil War litera- 


PSE See iain okaelg Bite ie ks <. 06 ba lenks 450 
Get ct DATIKS s<- seh pis's'as Sie ethane 4,930 
pecurities Alien Jundy - oss wee 0 90,000 
Securitics Smith) furntly «66 «sexe 15,000 


128,830 5138 ,830 


_ Prepare a report showing the financial status of the 
library. 




























'.d>08 208 MIIBORT he 
(noitanimexd bh. e3 ar fins a 


e2dit tong atect ic ofcaites ne otivpet wait 4 
suomy edt .Heso zied#? to aoisie 20g LD. ody: 

£ to tqoi ‘ors axlood oiT .t£toxwq Fe am ot git 

sutwofiot sdt sort #mometste Das osenisoe casgert 


G00. Bf69 ¢ Seer ..e+eg899t morl efgiscer decd 
000.33 Por ee -esevceeses qgatamosos Hesosifoony - 
000,28 LL ae Cal nt de) 


SAS 0 METEOR 7 a ae 


( noldsafasxd she de 5 Xe) e se i ; 
to somefed Ietat gotrollot edt atnsesxq yrexdil sifiduq ee 
: srepbel sett 


cfxoseid to essdousg tol Snvt asia 
OOC.SE Scat seccesensweser enter seo gQtserosle ‘ae 
) xref [fvi0 to eesdoseq tot Snast — es 
000, af Cone t vere rern neve scosenseg STMBIGEE com be 
oor 6 aWcnele aw eee eee teolt mort epee os ie 
002 af ocasccneecoceseg0092 [agnmneh qitetecaea | 7 


3a5°2 oe ee we? veeee ou pee asita wort enoort . at 
OSs cr rrsspreecsee quant SP inc rot z 6mep . ae - 
023.8 g..,sseneqxe ytheve Sar eeitals2 =s 


00.3 vote et ace ees cence ree sr bees gaten | cae 
COS.  exotvexstil£ ofsosefd fo sendo ees 
merstil is% Iivid to susdounT ee 
Odh ons ee cea wen so 09 els oe gee aes > ae 
Oc .é Jesse we site k eee ee Re SBBQ 
000,08 ....-.+s-ebmut moflA aeisiaeese 


| 900,21 cechend nae GAME it iad seta! wipes” 


PROBLEM NO. 266. 
(N.Y. C.P.A. Examination) 


| A corporation had a balance in surplus account at the end 
of its fiscal year, January 31, 1915, of $304,044.03 which in- 
cluded the profits for the twelve months ending January 31, 1915, 
$80,385.35. The profits to January 31, 1916, were $91,248.42, 

to January 31, 1917, $134,052.27 and to January 31, 1918, 

£150 ,107.14. 


: The dividends paid were, May 26, 1916, $100,000, April 10, 
1917, $100,000; on January 31, 1918, they charged to Surplus 
$13,000 for salaries of officers that had been omitted from . 
Profit and Loss account before closing. 


| Prepare a statement showing the surplus on February 1, 1918. 
This statement should also show the undistributed balance of each 
calendar year's earnings, as well as the undistributed balance 
of the earnings prior to January 1, 1915. In preparing this 
detail, bear in mind the fact that the dividends were paid from 
the most recent carnings. 


PROBLEM NO. 267. 
(B.Y. C.P.A. Examination) 


From the following data (a) prepare one trading account for 
the years 1916 and 1917, stating the gross profit for the two 
years, (bo) prepare a trading account with estimated inventory for 
1918; 


PALER 3910 gw Wiaeie sures - $290,696.81 Sales nominal,....- $493,476.87 
eee OM 623 YP Ree pe ee 293,548.21 Sales in carload 
Purcnases 1916. ..02.5 241,709 .33 De aes win a cote 39,351.68 
Purchases 1917,...-... 253,791.95 Return sales,..... 15,504.58 
Sales discounted 1916 1,238.55 Sales discounts,.. 4,267.30 
Sales discounted 1917 Jpvoo~eno Purchases, .......- 443,685.15 
Preipney im 1916, ....' 3,084.35 Freight in,.....-- 6,211.53 
Present A soe t sos ms « 4,094.70 Gross gain on car- 
Inventory, Jan. l, loka lots, «..... 1,956.42 
2216, | 63,784.78 
Inventory, Dec. 31, 
LoL 107 ,517.80 
Ref. 47-32 


164 














. een eer Mn Oe =e 
<i 
Tas eet 
| 88S :.O8 MLIRONT 8 


(mottenines’ .A.1.9 YM 


hao edt te tnvooos eulyuve at sonsied s bet aolsenos 

.afel . £6 yteunet yaibas edtnom svfewt ent 10% ot itemy eds 
«ad.836 [0% otow ,Of@L £6 yusynst of ss itord & P: 
ALCL <Id yuswunst of Bas VS.8d0, 8009 PSE 


.Of LixgA .000,00L3 ,SLef a8 ys ,otem Sieg ebaebivth eaT oe 
erlqis@ ot begredo yodt .Bf6L ,lé yravash mo ,000,00L- A: 
mort bottino aped bsd teds ereoitio io esize sot 000,éf0 
wanteolo e1otsd tmyoces esod bas tiior 


<i vusurdol mo extqrue oft anivode tremegeta s ozeqetT 
io ooasIed betudiateibay odd wede coals bigode tnemosete eit ® 
onsled betudixtetbau odt es [for ea .aehinise @?16Sy xebaeiso 
aiddt uxitsqotq mI .2@f@L. .f yrisunst of softg tinres odt 20” (ake 
sort bisq ater ebasbivib odt tedt tost edt baim ab rs0d ,tisteS | am 
vane | | “Veqriamss tnscet teom sdf 


a 

c 
ROES 

<] 


mas 


-V39S .O MAISORT ae | 
(noitenimex a Oe es & e-) y | = a 


rot tmvocos uaibsts oso stegeta (4) pebagh, prvigrely eit most e 
owt edd 10t titorq ecory cdt nattace ,VI€L bae dfeL szsey ORF a 
zoi yrotasval betauttas déiw tmsooos gatbsiat #& srsqory (3) oer ae 


78 -OT8 Seb. “ee «glsaines seiee TS. 503, 08S¢ o 62768 ONE ,clel aetse By. i ‘ 
beofrso at sels [$.882,;806 «-.--.-.+- .VSGl GGheee 

3.f80.C8 .......00+-,8t0L S8.COT, 12S ..+-+-s058) Sonncne 
62.806 ef ~ .2.40 ,sefse mustof ae.fOT, 088 «...-- at hek egasdomt = | 
Of.3G.8 ...atmoostb aefe2 22.86S.f Sf€L betavoceth solst ae 
SIl.SBG,EMP .....c.+,89eedomd .0eC,2 Tiel bedayoosth sslesie 
é2.[f$.9 reveccegith SdgierwT Gh. S866 oneeseOLGl at tag herd ae 
“tec no aiss gsorD ov.2e0,2 Mthara a ¢¥ cee sh Peet t a 

Rh.5c8 .f ade aM ~ator beolt 7 oma2G avrotaaval eae 2 
eT. B8T SS - _-. s ,ek@t 


08. TLE, TOL 


ot 






fe s00d .yrodaeus 


aL 


~~ oe 


Le 


208 
PROBLEM NO. 368. 


(N.Y. C.P.A. Examination) 


PROBLEM NO. 269. 
(N.Y. C.P.A-. Examination) 
The High Pressure Valve Manufacturing Company submit the 


following trial balance taken from their books in connection 
with the facts enumerated; the organization is highly skilled 


and dependent upon cooperation; give your recommendations as 


to what should be done to serve the interest of the business. 


Plant 914,500; Accounts receivable $4,000; Cash $1,510; 
Capital stock $15,000; Loans payable $3,000; Accounts payable 
4000; Notes payable $3,500; Sales $16,000; Cost of sales 
210,000; General expense $2,000; Selling expense $3,500; De- 
ductions from income $4,000. The valves are in demand and in 
general use, 


Ref. 47-6 



















- 808 


# Sod aomesise zyolt begesns wie Ae eters £ 20 sisi bies 


att to 20) even sd ano oT Key on 
sft to stitora ed? .fess os 
=Yoq sstiotq to s0itroqorg rosie ae 208 g001 2 
ae Hy wv 
. 8a8 08 ugIGOT 
oe & ; cen! 1 b 4 
(motteatesxd oAT.0 e¥ei) a 1 
, ’ : : ps . eee a oe 
inde yasqmod gaimtosivnel eviev eis sot? 
roiftsenmros ai atood xisdi mort nsiest- sommted £4! 
(lids yidstd at molvestacsxo edz hagen sanity: £208: 


f 
Smx00e% moyY ovip snoitereqooo 
+ 


roltebr 
; ttusd eft to teoretal oft svtes oF SKOw 


* eed 2000, $3 efdevteoos efamoook 002 $13 ast Se 
st SA 000,83 wideyeq eased ,000.cf¢ asote ae 

, 6afeg © gnod ;000,. 859 aetec 2002 2° elidsysd sstom. 500008 
~o7 (00c,&¢ caenegxe grtiiedg: 000.8% segeqee IstereD. Hg? 
tl bos Sasoeb ai ous eovisy Sat  .OCO<ee auoont afar ; 





299 
PROBLEM NO, 370. 


(N.Y. C.P.A. Examination) 


Richard Roe contracts with a textile establishment to 
sell the mill's annual output on the following conditions: 


The mill is to ship and bill the output to Roe at cost. 
Roe is to remit the mill 75% of cost upon receipt of the goods. 
The balance is to be remitted by Roe, as the various shipments 
aré sold, less 5% commission and advances, the goods being sold 
ar 10% profit above factory cost (mill shipments $7,327,918.18). 


At the end of one year an analysis of Roe's books reveals 
the foliowing state of affairs: 


DEBITS CREDITS 
MGR Ae BA VEDGE Bie cos o's 00 0.000 0a oo 6 5,545,938  % 5,000,000 
ME Aceh O Bits 038% sithie cs Estee hye 6,400,000 7,840,710 
Freight and cartage,......-.4+..- 90,000 80 , 009 
Cus tOmMmer spine sive ec e's eee 7,840,710 7,658, 200 
UGG oie veeecesicav tase ei Be ew . 7,610,200 5,635,938 
DA SOOUNGES Io. cals abs. Pete ry cw 2c, 000 
Commission, ...... nde Behe Ww ate wile WK. hs 320,000 
Mill SAO CUA Gye vlateta ns las om. olive Ws « 1,000, Q09 


$27,508,848 $37,508,848 
Prepare Roets financial statement. 
Ref. 48-4 
PROBLEM NO, 871. 
(N.Y. OsP.A. Examination) ) 


A telephone company found it necessary to increase its 
plant to accommodate 5,000 subscribers. Arrangements were made 
for the necessary additions, to pay for which 1,000 first 
mortgage 6% 50-year gold bonds were issued. A clause in the 
mortease provided that a sum equal to 2% of the total bond 
issue should be set aside annually out of the profits of the 
company for the redemption of the bonds. The average annual 
cost of maintaining and operating vas found to be $27.50 per 
telephone and $30,000 was estimated for other expenses. On 
January 1, 1900, 4,000telephones vere in use and the contractors 
_ agreed to complete their work at the rate of 350 telephones per 
quarter. What annval rental per telephone would the company 
have to charge in order to meet its obligations and to pay a 
dividend of 5% on $1,000,000 of its capital stock 


‘Ref. 49-1 
164 


«OTS 
(mottemimex® .A.T.9 s¥oH) 


BA), eet ae ek || Se oe . WAR as 
Ue Mee LEY « het te oa Ws, oe. aye wee ‘e 
ye a nN Ud pag ee OER eee Tee ee ane eh oO A 
“ory ei SPT oF \ 
et ; { 741 


was te 
ee AG 


Om Medsors 





| Od Swemfatidctes elttxed 2 dttr ctostta0e eof bredoin — 
semoltthnoo antwollotk edt mo tuqtio feunne at {ita ot ell | 


sta00 t2 eoff oF tudo Sat flid bas qide of at flte etl 
.aboog ett to rqkooet xéqn #800 to Rav Ifim oft timer of et oof 
avoitey edt as .oo8 yd bodtimez od oF ak odmeled odT 
bios sricd 85008 eit ,poosevbe bas notuatam@o &2 esel ,bfoe 

(6f.8f¢, 155,94 atnemytde Lftm) 900 yrotest evods tttorq FOL 20 


sfromqide 


aflsevozx sXood a'seff to oleyloas: me weoy oo to bao edt fA 


arian 





att eerouont ot Yuseascon FE Lawolk yasqeaoo dnsiten tet A 
eben orev efrad 
tert? 

edt at eansto A, 
‘baed Istot oft to 26 

edt to ettiory edd to tro ylfsumme éhtes toa od blyods evatk 


aTraTad 


BER, 386,48 F 


000,005, 9 


008 ,0L8,7 
000.356 


(faotteniaext An Ted sZt) 


Nexvh 


OOC et dolmy sot yeq of ..emoltibbe yusasesom od? 10 
-~hoveskt exer aimed blogs te9y 


lsumits onstevea onT 


‘zeq 02.7 


no 


8 Sq OF Sao anoite 


i) 
Sw 


-L°S om Mgaont 


ed o¢ brivot east 
-cacnogxs -redto tot befamit#es sav 0 
‘exotostimoo ect Ene eav tL exe? senodqelet 000.5 . pial 
‘neq semodcelet C&S to eter sdt $a aAror stedt etelqmos o¢ boerge » 
Yacquoo ed? blyow exodqelot req Letnet Lemans tect 
tildo att toom O¢ tobio nt 
fdoote Istiase eft ‘to 000,000, % £O 




















tetietis to otste bat nie ost 


pdasinv cb ct asilamamaeanea trim 
oe cee wb wb reek eee pee we eee filiM 
cvseveceoeseg Qgeduso bas Sdgtert . 
Chee ee eee eres aeeee oe® gO TOMOTBNO 
ee ee ek ee ee ek ek oe ; 
POO er re eel 
; + oe ob biel bem ong etee GiOkRORee 
ried \oarsnceter: LLin 


> Ars ae 
*evrew @Pevensere 


tnonetsta Letomentt s*eof ersqott . 
8D ., tof 


-,etodizoadya 000.4 etsbommoccse of = 


~02 2a egsstrom 
Oz - -Laype me # tedd? bebivorg essattom 
sebaod edt to dolfqueber edt tot yarqmoo 
aalisvereqo Bas aintetatssn 9600 | oe 
06% bas emodqelet == 
,00CL ..f ytavasG 
motte ey 
tedo ot —— Sit 
Le bites if 


fer 


260 
PROBLEM NO. 272. 


(N.Y. C.P.A. Examination) 


Henry Richardson purchased an office balicing for : 
5,000,000, on which there was a mortgage of $3,000,000 at 6%, 
title to pass December 1, 1919, Interest on the mortgage is 
payable March 1 and September 1; taxes for the year 1919, 
$160,000, payable October l, 1919, were unpaid; special assess-— 
ments of £180,000, due January 31, 1920, unpaid. The transfer 
was made on December be Soace The inventory of supplies on 
hand Bea eoee 1, 1919, amounted to $29,500; rents collected in 
advance $42, 000; rents due and uncollected °54, 000; rents for 
last quarter of calendar year due December 31, $52,500; due to 
contractor $285,000. The insurance policies expiring March 1, 
1920, covering the eh ode ageregate $4,000,000, the yearly 
premiums amount to $387,000. Subcontractors had placed liens 
on the property anounting to “68,000, while the contractor =. 
claims he owed them only $54,000. 


The agreement provided that 50 per cent of the purchase 
price over the mortgage indebtedness should be paid in cash, 
the balance to be secured by a second mortgage. Prepare 4 
statement showing how much cash should be paid to the seller 
on December 1, 1919; alse prepare proper entries to record the 
acquisition of the property on the books of account of 

ichardson. 


Ref. 49 ~4 
164 


036 , 
-STS OW MEL@ORT 
( moitsaiaserd oA.$.9 -¥.®) 






rot aatblind seltte ms beesdorwg soebrstolf yxrtet - 


~seoess Ietoogs ,bkotne ster .eLef .I xrsdoted efdsysq . 0 
: jn auaeb enh ,000, Mee 


-000,823 yao sedt? bero ed anisio — 


easdogeq sdf to too 0@ tsd? bobivozy fmemeetgs ocT 
fees at bisg od Givens’ seounbetdebai egsgtrom edt xevo seltg~ 
& Stsyetd .egegfsom bmooee # yd betyoes ed of sonsisd edt 
wsiies edt of blex ed blyoda deso doum wod rode sneuetsss — 
eas biocez oF asiasae rsqo1q exegqetg osls ; af tedmecesd 20 
te gayocog to exood sdf mo ytaeqorq ed? to moitielspos 

= 2D zo +t) 


PROBLEM NO. 275. 


(N.Y. C.P.A. Examination) 


E61 


John Jones and William Smith agree to merge their respective 


businesses as at January 1, 1920, 


into an incorporated company 


in which each shall own such share as shall be reflected by the 


proportionate net profits from their respective businesses 
the year ending December 31, 1919, when taken as a whole. 


for 


John Jones owns the factory building used by him which is 


valued at £1,000,000. 
businesses are deemed to be equal in value for the purposes 
the merger. 


The books of John Jones show as follows for the year e 
December 31, 1919: 


ee, ee a Ls 5's own d meee wins &1, 500,000 
PURCRAGES TAT Me COTTAGE) «cone e ss cee acnunscagnes 700,000 
Rr enGOr Te wanuaey 2s Lola gadn ase eb acasccaces umes 130, 000 
eaventory, December 31, L919, -wwwcese ce cecaen ees 95,000 
EEE alata ies bite lanca eae = ie reat ae MMA ca! ds (i gsr kn sek oo poli 300 ,O00 
Repadre to Oallding,...~<swcnsececcveesetensdans 30,000 
Mopar ee Gl COU, OMEN Gein ae once Gowen unseen ceseew sus 30,000 
eee eR eich ws eee Os we w einles ss wee ew eee 40,000 
Office expensea,s..»i.+- Se eae sah oy a RAE re ale ager fhe . 18,000 
Oo tae ed CR) CRETE in in de 9s cain A oO Ree oe we eo 15,000 
RS Ys aa ele ail ios! sada wo UE I, SY PORES eter ge Nga St er 6,500 
1axes8, Teal estate, «. ceases 2 A Sipe ee aes Meptay aee 3,200 
Taxes, special assessments, ....ee cee ernesreces 1,600 
Reeve ee CHALHER Oli pees ee sda ese ener s ee ewes 300 
Interest on bank balances,........ > aie a Se ewe 1,800 
Hi SGoOulin GO CUB TOUGES, <60 canes Sew enn cee aw eeeoe 1,700 
Taxes, federal income and excess profits,...... : 76,000 
interest on borrowed capital, ........eeesseeeees 6, 000 


For the same period the books of William Smith show as 
follows: 


my 1a REE SORES oO oR ESS ea ee ea $2,000, 000 
PUTCOAGSG , «eseccs Pe ee i atatntecte meee sala nal ss SS 1,050,000 
Inventory, December 31, 1919,......2-s02-seeneee 160,000 
inventory, January 1, 1919,...-.ceesesenerccnes . 185, 000 
Repairs tO machinery, .-cccseccesccivewassessaces 64,000 
ee a, Calne ann abe a's ca SO + 4 ew MR ee oe ee 8 600, 000 
ECG) OXPENSOR 5 ness 40s Vin 6 es eee ew eee meh ees 22,000 
Mot sik be whee ene eS hie 5 oo st eee Was ea aiar em ok 76,000 
PLT es eae a a dah ww Gs oes an oe One oe es ok ee ke 0 8 13,500 
‘Federal income and excess profits taxes,........- 86, O00 
Interest on bank balanacesS, ..-e- cs eee eee eeeeecce 22,000 
Bad debts charged off, ...-..eeevcee sere ccevccnes 500 
“Dascoants G6 Customers, s« ceca ccc ee wae esa wenese ne 2,000 
Selling Expenses, ...- cers ecceencserrerrcsvercces 10,000 


The assets and liabilities of the two 


of 


nding 


SBS * say rr = ~ — he 
Se ae, FP ee foe ee 


Las ‘ «BES -O% MEIGOAT ' | | ' a it 
(moitentnexd .A.7.0 «¥-%) os 


svitosqes1 zisds egrem of SoTyS Agimd meifIET bas senol adob | 







yrsqnos botetoqreeml ms ofni ,OSer ,f yrsumel te es aovesatend 
eft yd betociier od Ifsds as stade dsya sro Ilene dose dotdy at 


mot eocesniond evigosqeet ttedt sort efitotq fon egemolsroqorg 


efods s as msust aete ,ofer .fe sedmeced gnihae sssy sade 
ei doine sid yd boas naibkiud yrotoss adt omwo eonoL sfol 


ont oft to eeitifidert bas atsece odT .000,000 .f2 #s boxulev 


to sesoqusa eit 10t sulev at Leupo sd of beweoh ors coseonteud = 


cS 


mmibas steey odd soit avolfet es Tode asnct adot to eiood eft ae 
7 ae ht ae  3@fer ,.f& redmeced 

090,006.25 oad dakessbhe comes eoas See oe nee ae «dim tin «sey ge 6 

060,095 eee ela beedcvesgeLolzstem Men, ,eeeenoses 

909,.c2f 5 en a pecsccseceegesed gk Nusueee axyrotaeval 

ts cay. hee ane wsvevegesod ,f& xrsdmooed eyrosaeval — 

wr Ag AS eecenane ee es ees eee bales SO bees ae eee eee : 

O00 dF slacnecceccocccccuea (haeenqitieanMen ie —=—m—— gs 

000.08 ae eee Pane fee aeereeese getomglups o¢ erisqoeh 

000,02 rr ere gaiiied 

059,32 saline: Soaks pe cevecevcécbate desgQGGNOGRe Spmaen. 

000.6 omnes taney s ea ee os see ee BONO BAOL OF yscled 

O9s48 ee eee eu debe ee ee Sut as ae re 

508 .é oe et Ge Saladin cai eee ee .poxet 

003.2 euececdusvevvived sb s6ugeeneneaeuee Isteeqs ,aexeT 

006 bbe eenaces eres sseess git bonrsdo eideb bed 

o08.f ew eweacccccccevecs seve SOORSERG Anne ae tesistal 

ee eee ed eee cecsensccoeveccese+esgmotanyo of smvocett 

000,89 cecessegetitota seeors bas emoont Ie1gbst ,aoxsT 

000 .3 Peree rere eee ~-glatiqse Deroxziod ac sastetal 


as wonds dfin®? usiflrf to sfood ent Solreq Sass ei? 10F 
Ws setroffot 

000 .000,.8¢ eer eere se atine we on wdele oe we apenas ease ; 
Q00 .Oc0,f er 
009 ,05£ Stee seas sewacrequeel gE sodusoed .YIorAsvA 
000 .<8£ ye wecccccescccsgblek gi YESuUaSL ,YrOsMeva 
606.38". § 9 Snwae wae wacccceceecesceveseyiomidess of. stieqet 
O000.00G «<6 oc eo 4 halo dats ta dade eds tee ae 


600,66 . a wees eee « deesceedegseceaqQegemere 8oliio 
000.37 ee rvreeerzpeee zr ee ee gee ta ee, ae eid «> ase eo 
§0¢.oL on ow iy cre lm saaerga mala ct dau anaes Ws 9b Ja We wg 
900,38 He See .,sexst efitery secoxs bea sucont Ierebet 
000.88 ecewaccoveccccsceoe. gponensisd wned ao Seosssat > 
o0¢ “ Se dewessccecepacecasssse@ 230 RORRBR® BICR Oem ) 
002.5 Cine oki e'n ewig wedi es 6kn as g ORME RND OF stesroos it 


000.0 oo gee dn ales sees estes seen es ewe g COC BERR awe 


nee a 
bal ; ct af 
a ——e | 





2628 


Jones's expense for insurance on real property | amounted to 
&4,000 and he charged off depreciation on building $90,000 and 
on equipment £30,000, while Smith charged depreciation on 

equipment °40,000. 

The corporation into which the businesses are merged has 
authorized capital stock of £3,000,000 divided into 60,000 shares 
of the par value of $50 each, and an authorized issue of 5% 20- 
year gold bonds of &1,000, 000, due January 1, 1940. 

Prepare statement showing comparable net earnings of the 
two enterprises, and also the interest of each party in the 
corporation after the merger became effective. 


‘Ref. 49-6 
164 






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of bovavoms YI T9GOTY 3 
bas 000,005 aaibiinod so me tto Segzed 
so goitsioorieh begrado & af tar .O0Gy 


oe f, 







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act ai wtisq dese to testovat ost gels San ,sestiqis 
“augtoctie eusoed segisa ect settle moire. 


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PROBLEM NO. 2374. 263 
(N.Y. C.P.A. Examination) 


The board of directors of the D,E,F Company removed their 
manager on April 50, 1917, on the general suspicion that his 
books misrepresented the true financial condition of the business. 
Prepare a statement showing the nature and the probable extent 
of the misrepresentation, also an approximate statement of in- 
come and profit and loss for the four months ending April 50, 
1917, and a balance sheet as of April 30, 1917. 

a sane following is a trial balance taken from the books April 
. » aie: 


CORREA. AGtOOE pe ved eed Krewe A ede aleayMats Aetehiot. & 75,000 
CEOs ied bs a ooo 0 a dee Pe phi Tee $ 10,000 
suventory, January 14 I9L7»« «. cere 128,600 
POS PSG. OF 2 6S. PLUTON Saxveas Mist wren ere 15,450 
ACCOUNTS TECCIVADlE, we tee wevnvece ag 34,500 
AGcouNntS payable). oss. eli. iat od Wane 39,000 
Loans payable,..-..... SO aA erates ‘ 10,000 
Sales; edocs Wateda Sidddevene lied kes 51,000 
PD WAICORSDOO PS, be. AP Ovum deevetever eos 40,700 
Salaries, saleoman,..-.sececsesscees 2,200 
AGVECCl eines «vcs swwwwedovewes when tun 1,650 
SSSOElOG OFT LCGy odd ee wtees tawaedeces 1,100 
PSN, FO. CUPS ROS Dtcddbaetetetowde nee 400 
BE CONVGSG So ro see cece des ee ae 300 
Insurance, January 1 to December 31, “ 
ES ly Deere re MARE DA AERTS CORE Owe 999 
Stationery and printing,....«........ 105 
Reserve for depreciation of fixtures . 2,710 
SUrpiUs, January Ly LT pees cidade es 48 ,394 


9220 , 004 226 , 004 


An analysis of the Purchases and Sales accounts revealed 
the following: purchases, year 1914, $122,000; sales, year 1914, 
$153,750; inventory, January 1, 1914, $101,000; purchases, year 
1915, $123,000; sales, year 1915, $153,170; inventory, January 
1, 1915, $100,000; purchases, year 1916, $121,000; sales, year 
1916, $154,722; inventory, January 1, 1916, $102,000. 

Fixed charges were $29,263 per annum. A further loss of 
$4,112.45 occurred by reason of excess charges paid on loom 
labor and there was a loss of materials from theft and careless- 
ness of strike breakers amounting to $500. 

The total productive loom hours accomplished were 43,064. 
The maximum hours per loom were 1200. The normal production, at 
mill cost, would be $119,203.47. Five per cent on actual loss 
of production was also to be paid. 

Prepare a statement showing what the manufacturer is en- 
titled to. 


164 




































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{ xoitenmimexs ekeG OTRAS 


xiedd Rovomet yasquod 1, 39,0 oft to arorget 
ods ONS noisiqema fexedteg od? mo ,vtel 


-nt %© ¢senetsts otemixotags ms celts 
OE LtigA patbae adtcom avot said TO | 
| rer ,0f Lfrgk io ea Teods sonsisd 2 bar ae 
{izqA axlood edd aott mexed somsisd fsizt s et aaivolloy erat ne 
oe i eae ae 


000,27 ¢ piedd ates sbeeek ees e nee Isztqso e 
000, 0£ ~ | oe boceabeaneos oveehe ease fos 
OCCA0GE . hencearks .Tlek .f yrusenet <Yrodme val 
Och ef ee¢eenee Leechaeitdbhewe sen ee eee : aN 
008, d& " ccc nuvmevsecegatdsvieoet etarocoh = =) 
600, Cf nage ame secese g@ideyeq efayoooh 
000,02 eer eee ee er aneol a ue 
OCO~.L ; Soe eee be Ges kee kn ib ane pe ee : iain di 
OOF, Qe er eseeeveowes st eavene oa een eee ; <a 
006.8 rea seveseesees qtempeise ,sotisisd ra 
O28,f : aa ave Week 6 Wise lala eas se hm) 
OOL if veeneveniped ah wane ReGenee .eotzrel(s2 
cos er PeerereeeeseH renee es eee ee oeeeE or 2 ah 
O0s ee ee eo ug: Nak se ue Se lula ad tea cae ie 
ee .f& rodmocet of I yrewnal ei oH | 
ee? coe ee evens Cia we enw t eee + Sole Ge wee: ©. . rf 
20f i ~ haw eave -egQaitniag bus ypremeigeve | 
Oft.S . seseezkt to mottsioszgeb rot evrseeh 


newer sees g VEEL Me 3 yeswaal geulquys 





belsevet atmrooas aele? bae epsedoiw edt to eteyleas is ey 

, ef gesy ,sofss -O00,S8f£5 ,sfef assy .ssesdomwg equtvrolloy ode - | 
scoy ,soesdoigd 600, for’ rer .f yrommel ,yrosmornt 4 ¥,5cle 
vyreunst. ,yrotaevat rOV LT. SealS ,elel asey ,seise ,000, S6f¢ .cfer. 

msoy ,seisa 000. £820 afek xusey .esasdor, (000,00L satel, «fo oa 

.000,60L88 ,SfCL .f yasrasl qyzesmoval (SST, OLel 14 

to aeel tedfavt A .mminms t9q S06,CSy stow eog $3 

mool ao Steq eegusdo eesexe to moeset yd bertyoog cB.gic 

-seelorso bas ttedé mozt efelzofan to scol & esr sted? wodel 

ages .006$ o¢ gaitavoms oreicotd exizta to seem 
.b80,.0) grav bedaliqmocce aryod mol evitoquborg fasos edt = 

ts ,medtouborg L[eutom odd ~.00GL oxer moof x9q e1vod aumlxem ect 

esol feuteos me tmso teq evi -¥S.S0S,eLf ad bInsow .teoo Ilia 

ms ; .btsy od of eels caw noitesborq to. 

ens af so1dostsmsa ott dade garivore greuetsets 2 e186 Cees 

| ; : tes baleen 


“ De Ge en tee Ce ee 
ACTOR EUs. ye Pepe ua see 


PROBLEM NO. o75. 264 
(N.Y. C.P.A. Examination) 


Your client submits the following trial balance received 
by him from the Emporium Company, a retail dry goods and 
furniture concern in which he contemplates investing by pur- 
chasing $25,000 (par value) of unissued capital stock, and re- 
quests you to submit such statements and comments as you may be © 
able to from the trial balance; he has no additional information: 


TRIAL BALANCE - DECEMBER 31, 1919 


A pate ete 3 Sa eee anal Kot Bree utes e-oGs 10,006 
SUPRA Ti, TE AOS eth sb ws obi e's +s o elete y le x28 40 ,000 
Pav ULree: SMC WORSE bid voles owe o's er os va 8,000 
Furniture and office equipment,............ 4,0 
Delivery equipment, automobiles,........... 13,000 
A. Be G. Company, & pex cent bonds,........ 15,000 
ep TN Genel A ia Wid Wiel Oe wigs noo a wy nea Glee ew xo 8b eis a 18,500 
PAGOOUIIGE TECOCLVEOLG, = cc wc cn ccs step eenene tse 2,200 
SHVENLORY, VOMUArY 1, 2910, .ce.s ss eeessecese 80,000 
PRBUCANES PTSMIUMG, sx cveceseasssevecseesaes 2,650 
TL ROE os walk 'e @ hele 900 kevin ene: Ba at ateh sets aoe tha ak te aed 33,400 
OEE EASE GE ARIE Een ne One a a ae $350,000 
Allowances to customers,........ lates a taceiae wos om 1,150 
Purchases,..... Ge Vee digas Meena a wi dee meee @ 215, 000 
DV SCOUNCe TOCEL VCO, sa-0c6 ce ena ee wan seen s aes 8,535 
PE cin Sm oixbia © 6 xis secs OE See a,e00 
PAOLA COOK e ds eee ss 6 sk tae en sab d nb aewsan ee 75,000 
Meal estate morteage,.«. 2s esse cs ernnneeeees . 25,000 
eke ec SU ok cee Le ae aa 11, 500 
EEE, Sahel ek Alig! Gig a al bum eters hie ak 8 See vie ie pie we 800 
POLLING GXPCTNGES, .u nce tei w ie ewes esaesene nse 30, 000 
PG De LARP BH Is wo vba ess brs hn cansee ses 6,500 
Advertising, ..-+sseserees rt err Ceres cee 4,000 
Office and general Expenses, ...- ee eeeeesene 11,000 
PR TS TSGE a Ala Ala i 4 oe. 8 a 4s Ss 4 0 ets wie eine oe Ks. wae ke 16,335 


87,150 $487,150. 


Note: Inventory at December 31, 1919, $50,000. 


164 






































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wiry yd gaitcoval peek babe Crore 
=r bas cote Letiqao beveeiay to (opiar 3 
od yak yoy ee eitmoumoo. bas etaonststa dove - 
‘noitemsolai [anettibba om esd ed qooneled telat ¢ 


OL «it PEMIOST < - TOMMIAT MAIAT® 


000, 0f 7 

000,08 - ee hn * _ ‘ 
Q0048 eee ceeeesecas ust + ssungetGnr cen aaa ae 
002.7 CULE iemeumbape"en2tto bas. 

OOO .SL sev ev eee o ROL ICOmOrE Lup 
Coc ~.adf avcccess gantod Si9e SOC - ! 
O0¢ , BL . ceines eT 
OES so bles 4cenretetaeene are nena eldevisost etmes: 
OCOLGS «nasser sseovevcecee@i@h qh Suaumst: wesovaewal 
023.5 scetecerbedenveovtnsoeee eee 


Ooh SE SII ST ee pi 
000 ,08f¢ : oyu des sale erly es sia hae «eam aire . a bh.. 
CEL, £ PT Tae 


900,2I5 «a's uculiee 6 9b o.a'e wrens wie ecptace ale iatnta alana ‘ 
esé,.8 tceecseednne 4 secon pM MM i ee 
y 0e2,£ cite ercesiwhaye es erisesiie ait amet tac 
000 ,2F corer eee ees eng eters een h sea aem, ae 

(oe: vr rresher sto ease ao inet . 
eaten CES meant 
wis ; eee ee ee eee ee ee 3 

O00 «OS wee ede eslaw 0/40 ele use) oesep im alten cn a 
062.3 ; b aciwle wire. « s-en0 ge woe Now wie wee fe RE Sees 
HOC ge” eee vervrerveonaereene 1 eeenee > eae sing ft $x9% 
000, ff - odin ie cone oe ais > 04 SONDOICe feren99 ie ig Si 
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265 


Prepare 2 plan of a depositor's ledger for a trust company 
that sllors 2% interest on daily balances. Incorporate in this 
plan the folloving varticulars exemplifying A's account: 


Deposits - July 1, 1900, $5,000; October 1, 
700; November 1, (60; April 1, 1901, 350; 
May 1, 60; June 1, (4,807.78; July 1, $2,045; 
August 1, $100; November 1, $120. 


Withdrawals - July 1, 1900, $4,245; July 1, 
34901, 87,103.30. 
164 






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